Resupply USD (reUSD)
reUSD is the native decentralized stablecoin of the Resupply protocol. It can be borrowed by users who leverage yield-bearing stablecoin positions in external lending markets as collateral. The protocol is designed to enable users to earn yield on their deposited collateral while simultaneously borrowing reUSD against that collateral.
Overview
reUSD is the native decentralized stablecoin of the Resupply protocol. It can be borrowed by users who deposit approved stablecoins into integrated lending markets and use the resulting interest-bearing positions as collateral. This mechanism aims to provide users with capital efficiency by allowing them to earn yield on their deposited collateral while accessing liquidity through borrowed reUSD. The protocol's design includes an Insurance Pool and specific borrowing rate calculations intended to manage risk and incentivize participation. Resupply operates as a Collateralized Debt Position (CDP) protocol and is described as a subDAO protocol of Convex Finance and Yearn Finance [1] [2].
The reUSD stablecoin is intended to maintain a stable value relative to the US Dollar [3]. Its stability is supported by the underlying collateral and protocol mechanisms such as redemptions [4] [5].
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 [4] [5]. 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 [4] [5].
The protocol's structure is based on Collateralized Debt Positions (CDPs) [5]. 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 [6] [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 [3]. 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 [4] [5].
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 [4] [5].
Collateral Types
The Resupply protocol accepts specific stablecoins as collateral to borrow reUSD. Initially, the approved collateral types are crvUSD and frxUSD [4] [5].
- 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 [4] [5].
Borrowing Rates
The borrowing rate for reUSD is dynamically calculated to remain competitive. The rate is determined as the higher value among three possibilities:
- Half of the lending rate earned by the collateral in its respective market.
- Half of the sfrxUSD rate.
- A minimum rate of 2% [4] [5].
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:
- 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 [4] [6].
- 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 [4] [6].
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 [4] [6]. Unstaking from the Insurance Pool triggers a 7-day cooldown period during which users continue earning reUSD rewards but do not receive RSUP tokens and cannot withdraw [6].
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]. Staking RSUP tokens is required to participate in governance voting [8]. Unstaking RSUP tokens is subject to a 14-day delay timer, during which staked RSUP does not receive platform fees or retain voting power [9]. The staking contract operates on a one-week epoch system, and new stakers must wait one epoch before being granted voting power [8].
The RSUP tokenomics include mechanisms for emissions and revenue distribution [9] [10]. RSUP has no maximum supply and follows a set inflation schedule, with emissions directed at voting incentives, the insurance pool, and CDPs [9] [10]. The initial emission allocation is 50% for voting incentives, 25% for the insurance pool, and 25% for CDPs, subject to adjustment by governance vote [10]. Emissions directed at borrowers are correlated to the amount of revenue the lending pool generates for the protocol [10].
Partnerships
Resupply was developed by teams associated with Convex Finance and Yearn Finance [4] [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 [4]. The smart contracts have undergone reviews by peers and external security auditors [4] [11]. The protocol also maintains a bug bounty program [12].
History and Milestones
Resupply was introduced in December 2024 [1] [2]. The protocol's smart contracts went live in March 2025 [13]. with the official dApp launch occurring on March 20, 2025 [14].
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 [15]. By April 8, 2025, the protocol had generated $345k in total fees since launch [16].
Security Incident
In late June 2025, the Resupply protocol experienced a security exploit resulting in a loss of approximately $9.5 million to $10 million [17] [18] [19]. The attacker targeted a vulnerability within the crvUSD-wstUSR pair, manipulating the share price of cvcrvUSD (a wrapped version of crvUSD staked in Convex Finance) by sending donations to its vault [17] [18]. This artificially inflated price was then used to exploit an edge case in the platform’s oracle and exchange rate calculations within the ResupplyPair smart contract, allowing the attacker to borrow a large amount of reUSD with minimal collateral [17] [18] [19]. The missing funds primarily originated from the wstUSR market [17].
Following the incident, Resupply acknowledged the breach, ceased trading the affected pair, and paused the compromised contract [17] [18]. The team stated that a full post-mortem would be shared after a complete analysis [18].
To address the loss, Resupply's treasury contributed 2.86 million reUSD, leaving a remaining loss of 7.13 million reUSD [19]. As part of a recovery plan, the protocol intends to burn 6 million reUSD tokens from the insurance pool, representing 15.5% of the total tokens in the pool, to cover a significant portion of the remaining debt [19]. The remaining 1.13 million reUSD debt is planned to be repaid gradually using future protocol profits or other methods determined by the DAO [19]. The recovery plan requires approval via a community vote and is set to begin three days after a successful vote [19]. Additionally, Resupply is offering 2.5 million RSUP tokens as an incentive to users who choose to keep their funds staked in the insurance pool [19].