What is Resupply USD (reUSD)?

Quick Facts

  • Type: Decentralized CDP stablecoin on Ethereum
  • Peg: Targets 1:1 with the US Dollar
  • Collateral: crvUSD and frxUSD in yield-bearing lending positions
  • Integrated platforms: Curve Lend and Fraxlend
  • Developed by: Teams behind Convex Finance and Yearn Finance
  • Launched: March 2025
  • Governance token: RSUP

Introduction

Resupply USD (reUSD) is a decentralized stablecoin issued by the Resupply protocol. It operates as a Collateralized Debt Position (CDP) system, enabling users to borrow reUSD against yield-generating lending positions rather than idle assets.

The core idea is capital efficiency: your collateral keeps earning yield while you access liquidity. This 'rehypothecation' model sets reUSD apart from many conventional stablecoins.

History & Background

Resupply was introduced in late 2024 as a subDAO protocol jointly developed by teams associated with Convex Finance and Yearn Finance — two well-established DeFi infrastructure projects. The protocol's smart contracts went live in early 2025, with the official dApp launching in March 2025.

In its first week, the protocol generated strong early traction, with tens of millions in reUSD minted. However, in mid-2025, the protocol experienced a significant security exploit targeting an oracle and exchange rate vulnerability in a crvUSD collateral pair.

How Resupply USD Works

Users deposit crvUSD (Curve's native stablecoin) or frxUSD (Frax's stablecoin) into designated lending markets — either Curve Lend or Fraxlend. The resulting interest-bearing positions are used as collateral to mint reUSD.

The borrow rate for reUSD is always set to the greater of: half the lending rate being earned on collateral, half the risk-free rate, or 2%. This formula keeps borrowing attractive while ensuring the protocol remains sustainable.

Peg stability is maintained through a redemption mechanism: anyone can redeem reUSD for underlying collateral at a small fee, providing a reliable price floor near $1. The redemption model is communal, spreading impact across all borrowers in a pool rather than singling out individual positions.

Tokenomics

Resupply uses a dual-token model. reUSD is the stablecoin minted by borrowers. RSUP is the protocol's governance and incentive token.

RSUP emissions are directed at three groups: the Insurance Pool, voting incentives, and direct borrower rewards. Borrowers who generate more protocol revenue receive a proportionally larger share of emissions — aligning incentives between users and the protocol's growth.

The Insurance Pool accepts reUSD deposits, distributes a share of protocol revenue to depositors, and acts as a buffer against external risks.

Circulating Supply ? 32.64 million reUSD
Total supply ? 32.64 million reUSD
Max supply ? -- reUSD
Updated 12h ago

Ecosystem & Use Cases

reUSD is primarily used within the Resupply ecosystem to unlock liquidity from otherwise locked stablecoin lending positions. Users can deploy borrowed reUSD into additional yield opportunities, compounding returns across DeFi.

The stablecoin is tradeable on decentralized exchanges, with Curve (Ethereum) being the primary venue. The smart contract implements LayerZero's OFT standard, enabling potential cross-chain transfers in the future.

Team, Governance & Community

Resupply was built in collaboration with the teams behind Convex Finance and Yearn Finance, two DeFi protocols known for their yield optimization infrastructure. The protocol describes itself as a subDAO operating under their combined governance umbrella.

Protocol parameters — including redemption fees — are configurable by the DAO through RSUP token governance. Smart contracts are immutable and non-custodial.

Advantages

  • Capital efficiency: Collateral earns yield while borrowing reUSD simultaneously
  • Low borrowing costs: Rate formula ensures borrow rates stay consistently attractive
  • Stablecoin-backed: Collateral is stablecoins, minimizing volatility-driven liquidation risk
  • Experienced team: Built by established DeFi teams with a proven track record
  • Aligned emissions: RSUP rewards scale with revenue contribution, not just deposited capital

Risks & Challenges

  • Smart contract risk: The protocol suffered a significant exploit in mid-2025, exposing oracle and exchange rate vulnerabilities
  • Collateral dependency: Stability depends on the health of crvUSD and frxUSD and their respective lending markets
  • Soft peg only: The redemption model enforces only a price floor, not a price ceiling
  • Concentration risk: Heavy reliance on Curve Lend and Fraxlend as the primary collateral platforms
  • Early-stage protocol: Limited track record beyond its 2025 launch

Long-Term Vision

Resupply aims to expand its rehypothecation model beyond its initial collateral types, potentially integrating additional yield-bearing stablecoin lending markets. The protocol's architecture — including LayerZero-based cross-chain compatibility — suggests a roadmap toward multi-chain reUSD issuance.

The broader goal is to offer DeFi users a yield-efficient stablecoin that transforms passive lending positions into active liquidity tools, without sacrificing the stability expected of a dollar-pegged asset.

Frequently Asked Questions

reUSD (Resupply USD) is a decentralized stablecoin on Ethereum that users can borrow by depositing crvUSD or frxUSD into yield-bearing lending positions as collateral. It is designed to maintain a 1:1 peg with the US Dollar.

Resupply was developed by teams associated with Convex Finance and Yearn Finance, two well-known DeFi protocols. It operates as a subDAO under their combined governance.

Users deposit crvUSD or frxUSD into Curve Lend or Fraxlend markets, and the resulting interest-bearing positions are used as collateral to borrow reUSD. A minimum deposit is required to open a position.

The borrow rate is always set to the greater of: half the lending rate earned on collateral, half the risk-free rate, or 2%. This formula means borrowing reUSD is consistently cheaper than the yield being earned on the deposited collateral.

reUSD uses a redemption mechanism that enforces a price floor near $1. Anyone can redeem reUSD for underlying collateral minus a small fee, which arbitrageurs use to restore the peg if it drops below $1.

The Insurance Pool is a smart contract where users can deposit reUSD to earn a share of protocol revenue. It also acts as a buffer against external risks, protecting the broader protocol and its borrowers.

RSUP is Resupply's governance token. It is used to vote on protocol parameters and also distributed as emissions to Insurance Pool depositors, voting incentive participants, and borrowers who generate protocol revenue.

Yes. In mid-2025, the protocol experienced a security exploit that resulted in approximately $9.5–$10 million in losses. The attacker manipulated an oracle and exchange rate calculation in a crvUSD collateral pair to borrow excess funds.