Resupply is a decentralized stablecoin protocol that allows users to borrow its native stablecoin, reUSD, by leveraging yield-bearing stablecoin positions in external lending markets. The protocol is designed to enable users to earn yield on their deposited collateral while simultaneously borrowing reUSD against that collateral.

Overview

Resupply operates as a Collateralized Debt Position (CDP) protocol, where users deposit approved stablecoins into integrated lending markets and use the resulting interest-bearing positions as collateral to borrow reUSD. This mechanism aims to provide users with capital efficiency by allowing them to earn yield on their collateral while accessing liquidity through borrowed reUSD. The protocol is built with a focus on leveraging the liquidity and stability of established lending platforms.

The reUSD stablecoin is intended to maintain a stable value relative to the US Dollar. Its stability is supported by the underlying collateral and protocol mechanisms such as redemptions. The protocol's design includes an Insurance Pool and specific borrowing rate calculations intended to manage risk and incentivize participation. Resupply is described as a subDAO protocol of Convex Finance and Yearn Finance ^{[1] [2]}.

How it Works

The core function of Resupply involves users depositing specific stablecoins, such as crvUSD or frxUSD, into designated lending markets like Curve Lend or Fraxlend ^[3]. The user's position in these lending markets then serves as collateral within the Resupply protocol. Against this collateral, users can borrow reUSD. This process allows users to potentially earn yield from their deposited stablecoins in the external lending market while simultaneously utilizing the value of that position to borrow reUSD for other purposes ^[3].

The protocol's structure is based on Collateralized Debt Positions (CDPs) ^[4]. When a user deposits collateral and borrows reUSD, a CDP is created. The amount of reUSD that can be borrowed is limited by the value of the collateral and the protocol's collateralization ratio requirements. If the value of the collateral falls relative to the borrowed reUSD amount, the position may become subject to liquidation to protect the protocol from bad debt ^[5].

REUSD Stablecoin

reUSD is the native decentralized stablecoin issued by the Resupply protocol. It is designed to be soft-pegged to the US Dollar ^[6]. The stability of reUSD is maintained through its collateralization by other stablecoins deposited into lending markets and through stability mechanisms within the protocol, such as redemptions ^[3].

Redemptions are a key mechanism for maintaining the reUSD peg. The process allows users to redeem reUSD for the underlying collateral at face value, which can help arbitrage opportunities if reUSD trades below its peg ^[3].

Collateral Types

The Resupply protocol accepts specific stablecoins as collateral to borrow reUSD. Initially, the approved collateral types are crvUSD and frxUSD ^[3].

• crvUSD: Deposited into a chosen Curve Lend market.
• frxUSD: Deposited into a chosen Fraxlend market.

These deposited stablecoins earn yield in their respective lending markets, and the resulting yield-bearing position is used as collateral within Resupply ^[3].

Borrowing Rates

The borrowing rate for reUSD is dynamically calculated to remain competitive. The rate is determined as the higher value among three possibilities:

1. Half of the lending rate earned by the collateral in its respective market.
2. Half of the sfrxUSD rate.
3. A minimum rate of 2% ^[3].

This calculation aims to ensure that borrowing reUSD remains attractive relative to the yield being earned on the deposited collateral.

Insurance Pool

The Resupply Insurance Pool serves as a safety layer for the protocol. It has two primary functions:

1. Liquidation Mechanism: The pool provides funds for liquidating user positions where the borrowed reUSD amount plus accrued interest exceeds a certain threshold relative to the collateral value. This is part of the standard protocol operation to prevent undercollateralized debt. The pool earns a fee when it is used for liquidations ^{[3] [5]}.
2. External Risk Mitigation: The pool acts as a reserve to protect the protocol against unforeseen risks associated with the approved collateral assets or external lending markets. If a collateral asset or its associated lending market experiences difficulties, the Insurance Pool can be used to repay outstanding reUSD debt backed by that distressed collateral. The pool would then attempt to recover value by selling the distressed collateral, aiming to prevent bad debt for the protocol ^{[3] [5]}.

Users can deposit reUSD into the Insurance Pool. By doing so, they accept a share of the risks the pool covers. In return, users who stake reUSD in the Insurance Pool receive a portion of the protocol's revenue and RSUP emissions ^{[3] [5]}.

Governance (RSUP Token)

Governance of the Resupply protocol is managed through the RSUP token. RSUP holders can participate in the decision-making process regarding the protocol's parameters and future development ^{[7] [8]}.

The RSUP tokenomics include mechanisms for emissions and revenue distribution. Emissions are designed to incentivize participation across different areas of the protocol, including the Insurance Pool, voting incentives, and directly to borrowers ^{[9] [10]}. The distribution of emissions to borrowers is intended to correlate with the revenue they generate for the protocol ^[3].

Partnerships

Resupply was developed by teams associated with Convex Finance and Yearn Finance ^{[3] [1] [2]}. These entities are described as key partners in the project's creation.

Security

The Resupply protocol utilizes immutable and non-custodial smart contracts ^[3]. The smart contracts have undergone reviews by peers and external security auditors ^{[3] [11]}. The protocol also maintains a bug bounty program ^[12].

History and Milestones

Resupply was introduced in December 2024 ^{[13] [14]}. The protocol's smart contracts went live in March 2025, with the official dApp launch occurring on March 20, 2025 ^{[15] [16]}.

Following its launch, the protocol generated approximately $44.7k in fees in its first week, with $35 million in reUSD minted against $42 million in collateral ^[17]. By April 8, 2025, the protocol had generated $345k in total fees since launch ^[18].