Lulo reports 6.4% drawdown on Boost deposits from Neutrl exposure

Boost depositors absorb losses tied to Neutrl's NUSD while Lulo's Protected tier stays whole Lulo’s Boost depositors just learned what “first-loss capital” means in practice. The yield platform reported a drawdown of approximately 6.4% on Boost deposits, tied to its exposure to Neutrl Finance. Lulo runs two USDC deposit products, called Protected and Boost. Boost depositors earn the higher yield, quoted at 6.5% to 7.88% APY. Protected depositors earn around 4%. In exchange for that extra yield, Boost capital sits in front of Protected capital and absorbs losses when an integrated protocol runs into trouble.

Also reported by The Defiant.

Source: Crypto Briefing