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April 16, 2025 – Neutrl, a decentralized finance (DeFi) protocol, today announced the closing of a $5 million seed funding round to launch its innovative NUSD “synthetic dollar” token. The round was led by digital asset private marketplace STIX and venture firm Accomplice, with participation from Amber Group, SCB Limited, Figment Capital, Nascent, and several prominent angel investors, including Ethena founder Guy Young and derivatives trader Joshua Lim (formerly of Arbelos Markets).
Neutrl aims to democratize access to a popular hedge fund strategy – arbitrage of locked altcoins – by tokenizing it into the NUSD synthetic dollar. This approach allows a broader range of investors to participate in this previously exclusive market, estimated to be worth $10 billion.
NUSD generates yield by acquiring locked altcoins at a discount in over-the-counter (OTC) markets and simultaneously hedging exposure with perpetual futures. This strategy profits from the price discrepancy between the discounted OTC price and the market price, rather than relying on directional market movements. This approach offers a market-neutral yield opportunity, appealing to investors seeking consistent returns without taking directional bets on volatile crypto prices.
"DeFi yields have compressed significantly, making it challenging for investors to find attractive returns," said Behrin Naidoo, co-founder of Neutrl. "Neutrl offers a compelling solution by opening up access to a sophisticated hedge fund strategy that was previously unavailable to most investors. With NUSD, anyone can participate in this lucrative market."
How Neutrl Works:
- Deposit Stablecoins: Users deposit USDC, USDT, or USDe and receive NUSD at a 1:1 ratio.
- Earn Yield: Users stake NUSD and mint sNUSD (liquid staking token) to earn yield generated from OTC altcoin arbitrage and delta-neutral hedging.
- Boost Yield (Coming Soon): Users will be able to increase their yield by locking sNUSD for a fixed period.
Key Features and Benefits of Neutrl:
- Market-Neutral Yields: NUSD offers returns independent of overall market direction.
- Accessibility: Democratizes a sophisticated hedge fund strategy for all investors.
- Transparency: Neutrl operates on a transparent blockchain, providing visibility into the underlying assets and strategy.
- Composability: NUSD and sNUSD are designed for composability within the DeFi ecosystem.
- Scalability: Neutrl's architecture is built for scalability to accommodate growing demand.
Investors:
- STIX
- Accomplice
- Amber Group
- SCB Limited
- Figment Capital
- Nascent
- Guy Young (Ethena founder)
- Joshua Lim (derivatives trader)
- .....
About Neutrl:
Neutrl is a DeFi protocol that provides market-neutral yield opportunities through its NUSD synthetic dollar token. For more information, visit https://www.neutrl.fi/.
Compiled by CMO Intern team
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