Lulo Says Boost Deposits Face 6.4% Drawdown From Neutrl Exposure

Lulo reported that its Boost deposits face a 6.4% drawdown tied to exposure to Neutrl, while stating that protected deposits are unaffected. Neutrl's redemption contract is offering only 0.51 USDC per NUSD, implying a roughly 49% haircut for holders seeking to exit. The news signals stress in a DeFi yield product and could erode confidence in similar structured deposit offerings, though the damage appears contained to Boost depositors rather than the broader market.