Lulo Boost Deposits Face 6.4% Drawdown as NUSD Redemptions Pay $0.51

Lulo's higher-yield Boost deposits face a roughly 6.4% drawdown from exposure to Neutrl Finance's synthetic dollar NUSD, with the loss confined to Boost deposits.

Neutrl has opened redemptions at about $0.51 per NUSD after losses in its strategy positions reduced reserve liquidity. The rate would return roughly half of NUSD's $1 reference value to holders who redeem. It applies to NUSD, not directly to Lulo Boost deposits.

Lulo's Protected deposit principal has not been affected. Boost deposits are designed to bear the risk from the affected positions. Boost users receive higher yield in exchange for taking that risk. The roughly 6.4% figure measures the expected decline across Boost deposits; the $0.51 figure is the redemption rate for each NUSD.

The losses stemmed from Neutrl's investment positions, not a hack or smart contract flaw. Lulo is a lending and yield aggregator in the Solana ecosystem, while Neutrl Finance operates a synthetic-dollar protocol on Ethereum. Neutrl's NUSD redemption option is open to holders.