Resupply

Resupply is a decentralized stablecoin protocol that issues the reUSD stablecoin through Collateralized Debt Positions (CDPs) backed by interest-bearing stablecoins (crvUSD and frxUSD) deposited on Curve Lend and Fraxlend. Users supply crvUSD or frxUSD as collateral to mint reUSD while continuing to earn the underlying lending yields — including lending fees, boosted CRV rewards, and any extra rewards — from those lending markets, allowing their stablecoins to "work up to 20 times as hard."

How Resupply generates yield for its users

Resupply builds its yield on top of two existing lending platforms (Curve Lend and Fraxlend). When you put stablecoins (crvUSD or frxUSD) into a Resupply CDP (a type of collateralized loan position), that collateral gets lent out on those platforms. You keep earning whatever those lending markets pay — lending fees, boosted CRV rewards, and any extras — just as if you had lent directly. So your stablecoin keeps working for you even while it backs your loan.

Borrowing reUSD

You can mint the protocol's stablecoin, reUSD, against your CDP. The borrowing cost (what you pay to hold a reUSD loan) is set by a formula: it picks the higher of half the underlying lending rate, half the sfrxUSD rate (a risk-free reference rate), or 2%. This lets you create leverage — your collateral keeps earning its lending yield, while the reUSD you borrow can go elsewhere for additional returns.

Peg-based rate adjustments

A dynamic priceWeight multiplier tweaks the borrow rate. When reUSD trades at its intended $1 peg, the rate sits at 50% of the reference rates. When reUSD drifts below peg, the rate rises, and the extra revenue goes to Savings reUSD (sreUSD). This mechanism helps pull the price back toward the peg.

Where protocol revenue comes from

The protocol makes money from two sources:

• Borrow rate fees – charged on reUSD loans
• Redemption fees – 1% per redemption (0.8% reduces borrower debt, 0.2% goes to the protocol)

How revenue is split (governance can change the percentages)

Each week, total revenue is divided among four recipients:

• 70% to staked RSUP holders (the protocol's governance token)
• 15% to sreUSD (an auto-compounding vault)
• 10% to the Insurance Pool
• 5% to the Treasury

RSUP token emissions

RSUP has no maximum supply and is minted on a schedule. New tokens are distributed to three groups:

• 50% as voting incentives (to encourage liquidity for reUSD and RSUP on exchanges)
• 25% to Insurance Pool depositors
• 25% to CDP borrowers (proportional to the borrow fees their lending pool generates)

Insurance Pool

Users are rewarded with reUSD (from borrow fees) and RSUP emissions to deposit reUSD as a safety buffer. When a CDP gets liquidated, the pool buys the collateral and covers any bad debt. The liquidated collateral (crvUSD or frxUSD) is then distributed to pool depositors.

Savings reUSD (sreUSD)

This is a standard vault (ERC-4626) with no lockups, cooldowns, or penalties. It auto-compounds reUSD yield from two sources: the weekly protocol revenue and the extra fees from the peg-adjustment mechanism. It also supports cross-chain transfers through LayerZero, so you can move sreUSD between different blockchains.