Neutrl Opens NUSD Redemptions at 51 Cents as Strata Junior Tranche Faces Wipeout

Neutrl opens redemptions at 51 cents per NUSD

Neutrl has opened a redemption program for its NUSD token. An Ethereum contract pays 0.51 USDC per NUSD, meaning holders get back about half of the token's $1 reference value.

The rate is visible in Neutrl's redemption contract. Its redemptionRate() function returns 0.51. Neutrl said NUSD and sNUSD holders may submit requests, receive USDC, and have the corresponding tokens burned. The public announcement did not specify the conversion applied to sNUSD.

Key numbers

• Redemption rate: 0.51 USDC per NUSD.
• Neutrl's disclosed liquid assets: about $27 million.
• Listed NUSD circulating supply: 53.39 million.
• Liquid assets equal about 50.6% of listed supply.

Strata's junior tranche faces wipeout

The same NUSD valuation is set to exhaust the first-loss buffer in Strata's Neutrl market. Strata scheduled an update that, once executed, would write jrNUSD to zero and set the srNUSD/NUSD value at 1.23971. Withdrawals would settle in sNUSD at the revised share values, not directly in USDC.

Strata's strategy contract held 1,569,767.937465 sNUSD against 1,347,230.397196 srNUSD outstanding. After execution, the calculations would allocate the entire sNUSD balance to senior holders and none to jrNUSD holders.

Legal concern about redemption terms

OAK Research raised a legal concern. The firm said accepting the program requires users to waive recourse against Neutrl across all their tokens, even if they redeem only part of their holdings. Neutrl's public announcement says users must sign an onchain message to verify wallet ownership and encourages them to review the applicable terms, but it does not describe the acknowledgment as a liability waiver. The portal was region-blocked during The Defiant's reporting, preventing an independent review of the exact clause.

What is confirmed

The redemption contract pays 0.51 USDC per NUSD. Neutrl's disclosed liquid assets were about $27 million on Aug. 28. The listed supply was 53.39 million NUSD. Strata scheduled an update that would write jrNUSD to zero and set the srNUSD/NUSD value at 1.23971. Withdrawals would settle in sNUSD. The scheduling transaction was confirmed on Ethereum at 6:48 p.m. UTC on Sept. 17 with a 172,800-second delay, meaning the update could execute no earlier than 2:48 p.m. ET on Sept. 19.

What is still unclear

The exact conversion applied to sNUSD in Neutrl's redemption program was not specified. The redemption portal was region-blocked, so the waiver clause could not be independently reviewed. The timing, amount, or recovery value of Neutrl's additional strategy positions remain unknown.

Why this matters

NUSD was designed to maintain a $1 value. The 51-cent redemption rate means token holders face a 49% shortfall. The impact extends to Strata's tranche products, where the junior tranche is set to lose its entire value. Strata warned that contract-produced values may differ from amounts realizable by holders.

What happens next

Strata said withdrawals would open after execution of the update. Deposits remain disabled. The update could execute no earlier than Sept. 19 at 2:48 p.m. ET.

Sources

• The Defiant