加载图片中Lulo reports 6.4% drawdown on Boost deposits from Neutrl exposure

The yield platform's first-loss tier absorbs the hit from Neutrl's NUSD, which is redeeming at 0.51 USDC, while Protected deposits stay whole

Tue 20 Oct 2026 · 11:22 EDT · 2 min read

In DeFi

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Lulo, a USDC yield platform, said its Boost deposits face a drawdown of roughly 6.4% because of exposure to troubled synthetic dollar protocol Neutrl Finance, The Defiant reported on October 20. Lulo said its Protected deposits are unaffected.

Lulo’s dashboard shows about $10.16 million in Boost deposits. Boost capital earns a higher yield than the Protected tier in exchange for absorbing losses first when an integrated protocol fails, so the drawdown reflects Neutrl’s share of Lulo’s allocations rather than the full loss on Neutrl’s NUSD token.

Neutrl redemptions pay 0.51 USDC per token

Neutrl paused minting, redemptions and other protocol functions in mid-August after what it described as circumstances affecting protocol reserves, and later attributed the problem to a strategy-position issue rather than a hack or smart contract exploit. In an August 28 update, it reported about $27 million in available liquid assets, with other strategy positions not presently liquid.

The protocol opened a redemption portal on September 17 for NUSD and its staked version, sNUSD, with an onchain rate of 0.51 USDC per token. The program is expected to run until November 14 and is operated by Caverna Auctus. Neutrl said timing, amounts and recovery outcomes should be treated as estimates that can change.

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The losses have also hit other protocols built on Neutrl. Strata Markets said its junior jrNUSD tranche is written down to zero at the 0.51 rate, with its senior tranche absorbing the remaining value.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.