reUSD: Resupply's Native Overcollateralized Stablecoin
reUSD is Resupply's native overcollateralized stablecoin, pegged to the US dollar and backed by yield-bearing stablecoin collateral in Curve Lend and Frax Lend markets — uniquely sharing earned lending fees with borrowers.
Quick answer
reUSD is Resupply's native overcollateralized stablecoin, pegged to the US dollar and backed by yield-bearing stablecoin collateral in Curve Lend and Frax Lend markets — uniquely sharing earned lending fees with borrowers.
reUSD is the native decentralized stablecoin of the Resupply Protocol, designed to maintain a 1:1 peg to the US dollar. Unlike fiat-backed stablecoins that rely on centralized reserves, reUSD is overcollateralized by yield-bearing stablecoin collateral — specifically crvUSD and frxUSD deposited into Curve Lend and Frax Lend markets. This approach keeps the entire minting and redemption process on-chain, transparent, and permissionless.
How reUSD is Minted
Users mint reUSD by depositing crvUSD or frxUSD as collateral into a Resupply vault (a minimum of 1,000 units). The deposited collateral is put to work in yield-bearing lending markets — it does not sit idle. In exchange for locking collateral, users receive reUSD at a borrow rate that is set to whichever is highest among:
- Half the market's current lending rate
- Half the prevailing risk-free rate
- A minimum floor of 2% per annum
The Key Innovation: Fees Shared with Borrowers
Most stablecoin protocols collect the yield earned on collateral as protocol revenue. Resupply takes a different approach: the interest earned by deposited crvUSD and frxUSD in the underlying lending markets is partially redistributed back to reUSD borrowers, subsidizing the borrowing cost. The result is a stablecoin where the cost of minting is structurally below the yield the collateral generates — creating a built-in positive carry for users.
This mechanism distinguishes reUSD from purely algorithmic stablecoins (which rely on reflexive incentives) and from fully fiat-backed stablecoins (which offer no yield pass-through to borrowers).
Maintaining the Peg
reUSD uses a redemption mechanism to defend its $1 peg. If reUSD trades below peg, arbitrageurs can redeem reUSD directly for the underlying collateral at face value, shrinking supply and pushing the price back toward $1. Repaying reUSD unlocks the original collateral from the vault. This hard redemption floor prevents prolonged depeg events that have plagued purely algorithmic stablecoins in the past.
The overcollateralized nature of the system provides an additional buffer: the collateral base always exceeds the reUSD in circulation, meaning there is always more value backing the supply than the stablecoin represents.
Collateral Choices: crvUSD and frxUSD
By accepting two established DeFi-native stablecoins as collateral, Resupply reduces dependency on any single collateral type and diversifies risk across two well-audited lending ecosystems.
- crvUSD: The native stablecoin of Curve Finance, generated through Curve Lend markets using a novel LLAMMA (Lending Liquidating AMM Algorithm) mechanism that softly liquidates collateral over price ranges rather than in single events.
- frxUSD: Frax Finance's dollar-pegged stablecoin, deployed in Frax Lend markets. frxUSD benefits from Frax's deep liquidity integrations and its hybrid collateral model.
Using reUSD Within the Resupply Ecosystem
- Insurance Pool: Deposit reUSD to earn RSUP governance tokens, protocol fees, and a share of liquidated collateral. The Insurance Pool captures 25% of all RSUP emissions.
- Liquidity Pools: Provide reUSD liquidity in Curve pools to earn 50% of RSUP emissions plus trading fees, deepening on-chain liquidity and improving the peg's resilience.
- Open DeFi Usage: reUSD is a standard ERC-20 token and can be freely traded, transferred, or used in any compatible DeFi protocol.
Protocol Data — reUSD (Source: DeFiLlama)
The following metrics are sourced from DeFiLlama's stablecoin tracker. Data is live and subject to change.
Conclusion
reUSD represents a genuinely differentiated stablecoin design. By anchoring its collateral in live DeFi lending markets and structurally sharing yield with borrowers, it creates alignment between the protocol and its users that most stablecoin architectures lack. With over $36M in circulating supply backed by yield-generating on-chain collateral, reUSD is establishing itself as a compelling option for DeFi users seeking a decentralized dollar with real economic throughput.
Frequently Asked Questions
What is reUSD?
reUSD is Resupply's native overcollateralized stablecoin, pegged to the US dollar and backed by yield-bearing stablecoin collateral in Curve Lend and Frax Lend markets — uniquely sharing earned lending fees with borrowers.
How does reUSD maintain its peg?
reUSD maintains its dollar peg through over-collateralised crypto assets or fiat reserves. The specific mechanism — whether over-collateralisation, algorithmic rebasing, or fiat-backed reserves — determines its stability profile, capital efficiency, and risk characteristics. Full details are available in the protocol's documentation.
Is reUSD backed 1:1 with US dollars?
That depends on the type of stablecoin. Fiat-backed stablecoins hold cash or cash-equivalent reserves at a 1:1 ratio. Crypto-backed stablecoins like DAI are over-collateralised and hold more collateral than the stablecoins issued. Algorithmic stablecoins may not hold 1:1 reserves at all times. Check reUSD's official documentation for the exact backing structure.
What collateral backs reUSD?
reUSD's collateral composition is defined in its smart contract parameters and may include cryptocurrencies, tokenised real-world assets, or fiat-equivalent deposits. The current collateral breakdown is typically published in real time via the protocol's dashboard or on-chain analytics tools such as DeFiLlama.
Is reUSD safe?
No stablecoin is entirely risk-free. reUSD carries risks specific to its peg mechanism, including collateral volatility, oracle failure, smart contract vulnerabilities, and regulatory action against its issuer or backing assets. Reviewing audit reports and understanding the peg mechanism is essential before holding significant amounts.
What are the risks of holding reUSD?
Risks include de-pegging events (where the stablecoin trades above or below $1), smart contract exploits, collateral liquidations, issuer insolvency (for fiat-backed variants), and regulatory restrictions. Historical de-peg events in the stablecoin market — including the collapse of TerraUSD in 2022 — underscore the importance of understanding each stablecoin's mechanism before committing capital.
Where can I buy or obtain reUSD?
reUSD can typically be acquired on decentralised exchanges (such as Uniswap or Curve Finance) or centralised exchanges. Some stablecoins can also be minted directly through the issuing protocol by depositing the required collateral. Check CoinMarketCap or CoinGecko for a list of exchanges listing reUSD.
How can I earn yield on reUSD?
reUSD can be deposited into lending protocols such as Aave or Compound, supplied to DEX liquidity pools on Uniswap or Curve, or staked in the issuing protocol for protocol rewards. Yield rates fluctuate based on supply and demand. Always compare rates on aggregators like DeFiLlama's yield tracker before committing funds.
Who created reUSD?
reUSD was created by a team of blockchain developers or a decentralised protocol. Some stablecoins are issued by regulated companies (Circle issues USDC; Tether issues USDT), while others such as DAI are governed by a decentralised autonomous organisation (MakerDAO). Check the official reUSD website for publisher information.
How does reUSD compare to USDT and USDC?
USDT (Tether) and USDC (Circle) are the two largest stablecoins by market capitalisation and are both fiat-backed. reUSD may differ in its collateral type, decentralisation level, transparency, supported chains, and regulatory status. Decentralised stablecoins like DAI or USDe offer censorship resistance that fiat-backed alternatives cannot provide, at the cost of greater complexity and different risk exposures.