Neutrl: Unlocking Institutional OTC Yield for Stablecoins

Introduction

Innovation in crypto has increasingly focused on expanding access to strategies and markets that were historically limited to institutions and investors with large balance sheets. One of the most successful examples of this trend has been the rise of yield bearing synthetic dollars, which package complex trading strategies into simple stablecoin products for a broad user base.

Ethena demonstrated the scale of demand for these products by bringing the cash and carry trade onchain. Its growth has been rapid, expanding from $100M in TVL in January 2024 to $6.5B today, with peak TVL reaching $15B in October 2025. This growth validated both the appetite for delta neutral yield and the willingness of users to allocate meaningful capital when execution and risk management are credible.

Neutrl builds on this foundation but targets a less accessible and potentially more lucrative segment of the market. The protocol is a synthetic dollar system designed to generate yield through a combination of delta neutral strategies and hedged OTC arbitrage. While delta neutral strategies are increasingly commoditized, access to discounted OTC token deals has remained largely gated to funds, whales, and well connected institutions due to capital requirements, counterparty risk, and operational complexity.

By structuring these strategies within a synthetic dollar framework, Neutrl aims to make institutional style OTC arbitrage available to a broader pool of capital while maintaining a delta neutral risk profile. This positions the protocol differently from existing yield bearing stables, with returns driven less by funding rate cycles and more by structural inefficiencies around token unlocks and liquidity preferences.

Overview of NUSD and sNUSD

NUSD is minted when users deposit USDC, USDT, or USDe into the protocol on a one to one basis. These deposited stablecoins form the capital base that Neutrl deploys across a range of yield generating strategies. These include hedged OTC arbitrage as well as delta neutral strategies such as cash and carry trades and funding rate arbitrage. Each of these strategies is designed to remain market neutral while extracting yield from structural inefficiencies. A more detailed breakdown of these strategies is provided later in the report.