Lulo's Boost deposits to see ~6.4% drawdown due to Neutrl Finance exposure

October 21 — Lulo announced that its Boost deposits will experience a drawdown of approximately 6.4%. The reason is that Boost's yield strategy used Neutrl Finance, a synthetic dollar protocol on Ethereum. Lulo said the impact only involves Boost. Boost is a product that takes on risk for Protected deposits, so the principal of Protected deposits is unaffected. Neutrl's strategy positions suffered losses and reserve liquidity was impaired, after which redemptions were opened at a ratio of about $0.51 per $1, allowing holders to recover roughly half. Lulo stated that this incident was not a hack, nor was a smart contract vulnerability exploited, and more updates will be announced later.