Neutrl has opened an emergency redemption route for NUSD holders, allowing them to swap their token for USDC at a rate currently hovering around $0.51 per token. This significant discount follows losses incurred in the junior tranche of a Strata collateral vault. The remaining senior collateral is being used to fund these emergency redemptions, meaning NUSD holders are not facing a total loss but are recovering approximately half of their initial investment. This situation serves as a reminder that structured DeFi products merely redistribute losses across tranches without eliminating them.
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