Neutrl, the decentralized finance protocol behind the NUSD synthetic dollar and its yield-bearing counterpart sNUSD, said roughly $27 million of its reserves are currently liquid after an issue affecting a strategy position. The remaining positions are not presently liquid, and the protocol cannot yet determine their recovery timing, amount or value. Neutrl said the pause was not caused by an exploit, hack or code vulnerability and followed consultation with legal counsel. It is finalising an early-redemption mechanism for NUSD and sNUSD holders, targeted for early September subject to a new contract deployment, an independent audit and further legal and financial reviews. Onchain research desk D2 Finance said Neutrl's dashboard showed about $137 million of collateral on June 7, while analyst Googly said the protocol may have been insolvent for weeks before the freeze because roughly half its assets remained illiquid. NUSD continued trading near its dollar target, while sNUSD fell as low as $0.5582 in thin Uniswap pools. Strata also paused functions for products backed by sNUSD collateral.