What is Resupply Finance? reUSD, RSUP and the Convex × Yearn CDP Protocol Explained (2026)

Resupply Finance is a decentralised CDP (Collateralised Debt Position) stablecoin protocol on Ethereum, co-built by Convex Finance and Yearn Finance. It allows users to deposit yield-bearing lending positions — specifically crvUSD positions from Curve Lend (LlamaLend) and frxUSD positions from Fraxlend — as collateral to mint reUSD, the protocol's native dollar-pegged stablecoin. Crucially, the collateral continues earning its underlying yield — boosted by Convex Finance's accumulated veCRV — throughout the entire life of the loan.

Announced in December 2024 and launched on Ethereum mainnet on 20 March 2025, Resupply was built as a joint subDAO project between two of DeFi's most established protocols. Convex Finance contributes its veCRV voting power and boost infrastructure; Yearn Finance contributes its yield strategy expertise and vault architecture. The result is a protocol that sits at the intersection of stablecoin issuance, yield optimisation, and DeFi's governance layer.

The Core Mechanic: Yield-Bearing Collateral

The defining innovation in Resupply Finance is that the collateral deposited by borrowers does not sit idle — it continues generating yield while securing the loan. When a user deposits crvUSD into Curve Lend, they receive an LP token representing their lending position. That LP token earns lending interest from borrowers on Curve Lend's isolated markets. In Resupply, that LP token becomes collateral for a reUSD loan.

When the LP token enters Resupply, it is automatically staked on Convex Finance. Convex's massive veCRV position provides the maximum 2.5x CRV boost to the staked position, meaning the underlying collateral earns boosted CRV and CVX token rewards on top of the base Curve Lend interest rate. This stacked yield — Curve Lend interest + boosted CRV + CVX — is what the collateral earns while the reUSD loan is outstanding.

Resupply's borrow rate is structurally set at half the yield rate of the deposited collateral. If a crvUSD lending position earns 10% APY, Resupply's borrow rate for reUSD against that collateral is approximately 5%. The positive carry — the gap between what collateral earns and what the loan costs — is the financial engine that makes the strategy self-sustaining.

How to Use Resupply Finance: Step by Step

Using Resupply Finance involves three core steps. First, users obtain crvUSD or frxUSD — Curve Finance's and Frax Finance's native stablecoins — and deposit them into a Curve Lend (LlamaLend) market or Fraxlend market respectively. This creates a yield-bearing LP token position.

Second, users bring that LP token position to Resupply Finance (resupply.fi), deposit it as collateral, and mint reUSD against it at a borrowing rate below the collateral's yield. The collateral is automatically staked on Convex Finance in the background.

Third, the borrowed reUSD can be deployed elsewhere in DeFi — supplied to the Resupply Insurance Pool to earn RSUP rewards and protocol fees, added to reUSD liquidity pools, looped back into additional crvUSD/frxUSD deposits to compound the strategy, or used for any other purpose. The leverage looping feature within Resupply automates the loop step, allowing users to select a target leverage ratio (up to approximately 20x) in a single transaction.

reUSD: Resupply's Native Stablecoin

reUSD is Resupply Finance's native overcollateralised stablecoin, soft-pegged to the US dollar. It is minted by borrowers who post yield-bearing lending positions as collateral. As of May 2026, reUSD has a circulating supply of approximately 35–90 million units, making it a mid-sized DeFi stablecoin by market standards.

reUSD's peg is maintained through a redemption mechanism: if reUSD trades below $1, arbitrageurs can redeem reUSD directly against protocol collateral at face value, removing reUSD from circulation and restoring the peg. This mechanism is similar to the redemption systems used by Liquity (LUSD) and Raft, and does not rely on centralised price feeds to trigger peg defence — the arbitrage incentive is structural.

reUSD can be used across DeFi wherever it is accepted — in liquidity pools, as a trading pair, or as a building block in yield strategies. Resupply's Insurance Pool and LP pools are the primary on-protocol yield venues for reUSD holders.

RSUP: Resupply's Governance and Rewards Token

RSUP is Resupply Finance's governance token, distributed as an incentive to protocol participants. Token emissions are divided across three recipient groups: 50% of RSUP emissions go to liquidity providers in reUSD trading pools (LP rewards), 25% go to users who supply reUSD to the Insurance Pool, and 25% go to other protocol participants and development contributors.

RSUP holders can vote on governance proposals covering protocol parameters, new collateral types, borrowing rate adjustments, and emission allocations. The token also accrues value through its connection to the protocol's bribe infrastructure: RSUP emissions to LPs create demand for gauge weight from protocols wanting reUSD liquidity, which can be directed via Votium Protocol — linking Resupply to the same bribe economy as Convex Finance and Curve.

RSUP distributions route through Votium, meaning vlCVX holders indirectly benefit from Resupply's growth as protocols bid for reUSD liquidity gauge weight using the same bribery system used for CRV emissions.

The Insurance Pool

The Resupply Insurance Pool is the protocol's stability backstop. Users who supply reUSD to the Insurance Pool serve as the first line of defence in the event of a bad debt event — if a borrower is liquidated and their collateral is insufficient to cover the loan, Insurance Pool depositors absorb the shortfall before the protocol's own reserves.

In exchange for bearing this risk, Insurance Pool depositors receive 25% of all RSUP token emissions, protocol fee revenue, and a share of collateral from liquidated positions. The yield on Insurance Pool deposits is therefore variable and depends on both RSUP token price and the frequency and severity of liquidations.

The Insurance Pool is conceptually similar to Aave's Safety Module and Liquity's Stability Pool — a yield-bearing risk buffer that allows the protocol to remain solvent through adverse market conditions without requiring centralised intervention.

Built-in Leverage Looping

Resupply Finance includes a native leverage looping feature that allows users to amplify their yield exposure in a single transaction. Rather than manually looping — depositing collateral, borrowing reUSD, converting to crvUSD, depositing back into Curve Lend, and repeating — users can specify a target leverage ratio in the Resupply interface and the protocol executes the full loop atomically.

The maximum leverage available depends on the collateral's LTV ratio. With typical LTV settings, users can achieve approximately 10–20x effective leverage on their base crvUSD or frxUSD position. At 10x leverage on a collateral yielding 8% APY, the gross yield exposure on the original capital becomes approximately 80% — minus borrowing costs, minus Convex fees. Net yields at high leverage are material but carry proportionally higher liquidation risk.

The key safety feature of Resupply's leverage model is that both the collateral and the debt are in stablecoin-denominated assets (crvUSD / frxUSD on the collateral side; reUSD on the borrow side). Liquidation risk comes from the two assets diverging — for example, if crvUSD depegs significantly — rather than from ETH price volatility, which is the dominant risk in leveraged ETH lending strategies.

Resupply Finance vs Traditional CDP Protocols

Traditional CDP protocols like MakerDAO (DAI), Liquity (LUSD), and Prisma Finance use volatile assets — ETH, wBTC, liquid staking tokens — as collateral. These are subject to sudden price collapses that can trigger mass liquidations during market downturns. Resupply uses stablecoin lending positions as collateral, which are far more price-stable by design. The primary risk in Resupply is not ETH price volatility but stablecoin depegging and interest rate fluctuation.

The yield-on-collateral mechanic also distinguishes Resupply from legacy CDP protocols. In MakerDAO, collateral (ETH, wBTC) earns no yield while the DAI loan accrues debt. In Resupply, the stablecoin collateral earns Convex-boosted CRV yield throughout, creating a fundamentally different economic profile — one designed for positive carry rather than simple leverage.

Resupply is closest in spirit to Inverse Finance's DOLA borrow mechanism and Raft Finance's approach, but with Convex's boost infrastructure as a native component — something neither competitor has replicated.

Security and Audits

Resupply Finance uses immutable, non-custodial smart contracts that underwent peer reviews and external security audits prior to launch. Immutability means no administrative key can modify the core protocol parameters after deployment — the same security guarantee provided by Convex Finance's core veCRV contracts.

Key risks in Resupply Finance include: smart contract bugs in Resupply, Convex, Curve Lend, or Fraxlend contracts; crvUSD or frxUSD depegging events (which affect collateral value); oracle failures; and Insurance Pool insufficient coverage during mass liquidation events. The stablecoin-denominated collateral reduces ETH price crash risk but does not eliminate systemic stablecoin risk.

As of May 2026, Resupply Finance has maintained a clean operational record since its March 2025 launch — over 14 months of mainnet operation without a major exploit.

Frequently Asked Questions: Resupply Finance

• What is Resupply Finance? Resupply Finance is a decentralised CDP stablecoin protocol on Ethereum, co-built by Convex Finance and Yearn Finance. Users deposit yield-bearing Curve Lend (crvUSD) or Fraxlend (frxUSD) positions as collateral to mint reUSD, while the collateral earns Convex-boosted CRV yield throughout the loan.
• Who built Resupply Finance? Resupply Finance was co-built by Convex Finance and Yearn Finance as a joint subDAO protocol. It was announced in December 2024 and launched on Ethereum mainnet on 20 March 2025.
• What is reUSD? reUSD is Resupply Finance's native decentralised stablecoin, soft-pegged to the US dollar. It is minted by borrowers who post yield-bearing lending positions as collateral. Its peg is maintained through a structural redemption mechanism that allows arbitrageurs to redeem reUSD at face value against protocol collateral.
• What is RSUP? RSUP is Resupply Finance's governance token. It is distributed to liquidity pool providers (50% of emissions), Insurance Pool depositors (25%), and other protocol participants (25%). RSUP holders vote on protocol governance. Emissions route through Votium Protocol, connecting Resupply to the Convex bribe economy.
• What collateral does Resupply Finance accept? Resupply accepts yield-bearing LP tokens from Curve Lend (LlamaLend) markets — specifically crvUSD lending positions — and Fraxlend markets (frxUSD lending positions). These LP tokens represent active lending positions that continue generating yield while in Resupply.
• How does Resupply Finance generate yield on collateral? When a user deposits a Curve Lend LP token into Resupply, it is automatically staked on Convex Finance. Convex's veCRV boost delivers the maximum 2.5x CRV reward multiplier to the staked position. The collateral therefore earns: Curve Lend lending interest + boosted CRV rewards + CVX token rewards — all while securing the reUSD loan.
• How is Resupply Finance's borrow rate set? Resupply's borrow rate is structurally set at approximately half the yield rate of the deposited collateral. If the collateral earns 10% APY, the reUSD borrow rate is approximately 5%. This creates a positive carry — the collateral grows faster than the debt accrues.
• What is leverage looping on Resupply Finance? Leverage looping is a built-in Resupply feature that automates borrowing reUSD, converting it to crvUSD, redepositing into Curve Lend, and using the new LP token as additional collateral — all in a single transaction. Users can select a target leverage ratio of up to approximately 10–20x depending on the collateral's LTV settings.
• What is the maximum leverage on Resupply Finance? The maximum leverage depends on the collateral's LTV ratio. With typical settings for crvUSD and frxUSD collateral, users can achieve approximately 10–20x effective leverage on their base position in a single looping transaction.
• What is the Resupply Insurance Pool? The Insurance Pool is the protocol's stability backstop. Users deposit reUSD and serve as first-loss capital in liquidation events. In exchange, they earn 25% of RSUP emissions, protocol fees, and a share of liquidated collateral. It is similar in structure to Aave's Safety Module and Liquity's Stability Pool.
• Is Resupply Finance safe? Resupply uses immutable, audited smart contracts and has operated without a major exploit since its March 2025 launch. Key risks include smart contract vulnerabilities, crvUSD or frxUSD depegging, oracle failures, and Insurance Pool coverage gaps during extreme liquidation events.
• What is the difference between Resupply Finance and MakerDAO? MakerDAO uses volatile assets (ETH, wBTC) as collateral and charges a stability fee on DAI debt. Resupply uses stablecoin lending positions as collateral and sets its borrow rate below the collateral's yield — creating a positive carry structure. MakerDAO collateral earns no yield; Resupply collateral earns Convex-boosted CRV throughout the loan.
• What is the difference between Resupply Finance and Aave? Aave is a lending protocol where users supply assets to earn yield or borrow against collateral. Resupply is a CDP stablecoin protocol that specifically uses yield-bearing lending positions (such as Curve Lend LP tokens) as collateral. The protocols are complementary — Curve Lend (which uses Aave-like mechanics) is an upstream input to Resupply.
• What is crvUSD and how does it relate to Resupply? crvUSD is Curve Finance's native stablecoin, minted against collateral through Curve Lend's LLAMMA liquidation system. Depositing crvUSD into a Curve Lend isolated market creates a yield-bearing LP token. That LP token is the primary collateral type accepted by Resupply Finance.
• What is frxUSD and how does it relate to Resupply? frxUSD is Frax Finance's stablecoin. Depositing frxUSD into a Fraxlend market creates a yield-bearing LP token. That LP token is the secondary collateral type accepted by Resupply Finance, alongside Curve Lend crvUSD positions.
• Can I lose money on Resupply Finance? Yes. Risks include: liquidation if collateral value falls below the required threshold (e.g. if crvUSD depegs); smart contract exploits; insufficient Insurance Pool coverage during mass liquidations; and RSUP token price decline reducing total yield. High leverage amplifies all of these risks.
• What chains is Resupply Finance on? Resupply Finance is deployed on Ethereum mainnet.
• What is the reUSD circulating supply? reUSD has a circulating supply of approximately 35–90 million units as of May 2026.
• How does the reUSD redemption mechanism work? If reUSD trades below $1, arbitrageurs can redeem reUSD directly against Resupply's collateral reserves at face value ($1 per reUSD). This removes reUSD from circulation, reducing supply and pushing the price back towards peg. The redemption is permissionless and driven by market arbitrage rather than governance.
• What is Votium Protocol's role in Resupply Finance? RSUP token emissions to reUSD LP providers are directed through Votium Protocol — the same bribery marketplace used for Convex Finance's vlCVX governance. Protocols wanting reUSD liquidity on specific pools can bribe RSUP voters via Votium, creating an ongoing demand for RSUP governance weight and connecting Resupply to the established Curve Wars bribe economy.
• How does Resupply Finance relate to Convex Finance? Convex Finance is a co-builder of Resupply Finance. When users deposit collateral into Resupply, it is automatically staked on Convex to receive the maximum CRV boost. Convex's veCRV position — approximately 50% of all veCRV — provides the boost infrastructure that makes Resupply's collateral yield competitive. Resupply is effectively a stablecoin product built on top of Convex's governance power.
• How do I start using Resupply Finance? Go to resupply.fi. First obtain crvUSD (mint via Curve Finance at curve.finance) or frxUSD (via Frax Finance). Deposit your crvUSD into a Curve Lend market to receive an LP token. Then bring that LP token to Resupply Finance, deposit as collateral, and mint reUSD. Use the leverage loop feature to compound if desired. Monitor your health factor to avoid liquidation.