Quick answer
Resupply is a DeFi lending protocol built on top of Curve Finance and Convex Finance. You deposit Convex vault tokens (cvxCRV, and other Curve LP positions boosted through Convex) as collateral and borrow reUSD — the protocol's stablecoin — against them. Your collateral continues earning Curve and Convex yield while it is locked. Staking reUSD earns you protocol fees and RESUPPLY token rewards, creating a compounding passive income stream.
What is Resupply Protocol and why does it matter?
Resupply is a stablecoin borrowing protocol purpose-built for the Curve Finance and Convex Finance ecosystem. It solves a specific problem that Curve LP holders face: your tokens are productive (generating CRV, CVX, and trading fee income) but completely illiquid — they are locked in pools and cannot be spent, transferred, or used elsewhere without unwinding your position.
Resupply allows you to borrow reUSD — the protocol's own stablecoin — against your Convex vault token positions. The critical distinction from simply selling your LP tokens: you borrow while your position continues to generate its original yield. Your Curve LP tokens work twice simultaneously — earning their native yield inside Convex, and serving as collateral for a stablecoin loan.
This positions Resupply in a distinctive niche within DeFi lending. Compare it to Aave, where you might supply USDC to earn 4-8% APY. Resupply lets you keep earning 10-30% on your Curve LP positions and additionally borrow stablecoins for other uses. The protocol is maintained by the team with deep roots in the Convex Finance ecosystem, which gives it direct integration advantages.
reUSD is the stablecoin minted by borrowers. Unlike algorithmic stablecoins (which have catastrophically failed, most notably Terra/LUNA in May 2022), reUSD is backed by real, over-collateralised Curve LP positions. Interest paid by borrowers flows to reUSD stakers — creating a yield-bearing stablecoin with real protocol revenue backing it.
Resupply sits at the intersection of three major DeFi sectors: stablecoin issuance (like MakerDAO/DAI), Curve Finance's liquidity layer, and Convex Finance's yield boosting. Understanding all three layers helps you understand where Resupply's yield comes from.
How does Resupply work? The three-layer system
To understand Resupply, you need to understand the stack it is built on. Each layer adds yield and functionality.
- 01
Layer 1 — Curve Finance (the base)
Curve Finance is the largest stablecoin DEX on Ethereum, specialising in low-slippage swaps between similar assets (stablecoins, liquid staking tokens, wrapped assets). Liquidity providers deposit token pairs into Curve pools and earn trading fees plus CRV token emissions. Curve LP tokens represent your share of a specific pool.
- 02
Layer 2 — Convex Finance (the boost layer)
Convex Finance is a protocol that allows Curve LP holders to deposit their LP tokens and receive boosted CRV rewards without locking CRV themselves. Convex also pays additional CVX token rewards. Depositing into Convex gives you a 'Convex vault token' (e.g. cvxCRV) that represents your boosted Curve LP position. Convex manages CRV locking on behalf of all depositors collectively.
- 03
Layer 3 — Resupply (the borrowing layer)
You deposit your Convex vault tokens into Resupply as collateral. Resupply accepts these tokens, values them at their current market price, and allows you to borrow up to a protocol-defined percentage of that value in reUSD. Your Convex vault tokens remain in Resupply's smart contracts, continuing to generate Curve and Convex rewards, while you hold reUSD to use elsewhere.
What collateral does Resupply accept?
Resupply accepts Convex vault tokens — the tokens you receive when depositing Curve LP positions into Convex. The supported collateral types reflect the deepest, most established Curve pools, prioritising stability and liquidity.
- Convex vault tokens
- Tokens issued by Convex when you deposit Curve LP tokens. Represent your position earning boosted CRV + CVX rewards. Resupply accepts these directly, so your yield continues accruing while they are used as collateral.
- Stablecoin Curve LP tokens
- Tokens from pools like 3pool (USDT/USDC/DAI), FRAX/USDC, and similar stablecoin pairs. These are the safest collateral — their value is relatively stable and deep liquidity makes them easy to liquidate if needed.
- Liquid Staking Token (LST) LP positions
- Tokens from Curve pools containing liquid staking derivatives such as stETH/ETH, frxETH/ETH, or rETH/WETH pools. These carry ETH price exposure — if ETH falls significantly, your collateral value drops and liquidation risk increases.
- Maximum Loan-to-Value (LTV)
- The percentage of your collateral value you can borrow. For stablecoin LP collateral, LTV is typically 85-90%. For volatile LST LP collateral, it is lower — typically 70-80% — to provide a larger buffer against price movements.
Step-by-step: how to borrow reUSD on Resupply
- 01
Get Curve LP tokens in the first place
You need an existing Curve LP position. Go to curve.fi, connect your MetaMask or Rabby Wallet, find a pool you want to provide liquidity to (e.g. the USDT/USDC/DAI 3pool), deposit your tokens, and receive Curve LP tokens in return. This step requires ETH for gas and the tokens you want to deposit.
- 02
Boost your position through Convex
Go to convexfinance.com, connect your wallet, find the corresponding pool, and deposit your Curve LP tokens. You receive Convex vault tokens and immediately begin earning boosted CRV + CVX rewards. Your Curve LP tokens are now inside Convex.
- 03
Navigate to resupply.fi
Go to app.resupply.fi — bookmark this URL. Always type it directly. Verify the URL carefully before connecting your wallet. Click 'Connect Wallet' and select MetaMask or Rabby Wallet.
- 04
Select your collateral
In the borrowing interface, select which Convex vault token you want to use as collateral. You will see your wallet balance for each supported token.
- 05
Enter collateral amount
Enter how much of your Convex vault token you want to deposit as collateral. You will see the current USD value and the maximum reUSD you can borrow based on the LTV ratio.
- 06
Set your borrow amount
Enter how much reUSD you want to borrow. Importantly: do not borrow the maximum. Borrowing at maximum LTV leaves no buffer for price movements. A conservative approach is borrowing 60-70% of the maximum — this gives your health factor substantial room before any liquidation risk.
- 07
Review your health factor
Before confirming, review your health factor. A health factor above 1.5 is recommended as a minimum buffer. The higher the health factor, the more price movement your collateral can absorb without approaching liquidation.
- 08
Approve and confirm
Approve the Convex vault token for use by Resupply (one-time per token), then confirm the borrowing transaction. Your reUSD appears in your wallet. Your Convex vault tokens are now in Resupply earning their native yield.
- 09
Track your position
Return to app.resupply.fi to monitor your position — collateral value, outstanding debt, health factor, and the Curve/Convex rewards accumulating on your collateral.
Never borrow at the maximum LTV. If your collateral value drops even slightly, you risk liquidation at a loss. For volatile collateral (LST pools), maintain a health factor of 1.7 or higher. For stablecoin collateral, 1.4 is a reasonable minimum buffer — these are more stable but not immune to depegging events.
How to stake reUSD and earn passive income
Once you have borrowed reUSD, you can put it to work instead of holding it idle. Staking reUSD in the Resupply protocol earns you a share of the interest paid by all borrowers — turning borrowed stablecoins into a yield-generating asset.
- 01
Navigate to the Earn / Stake section
In the Resupply interface, find the 'Earn' or 'Stake' section. Here you can see the current staking APY for reUSD, which fluctuates based on total borrowing demand and total reUSD staked.
- 02
Approve reUSD for staking
First-time staking requires a token approval transaction (one Ethereum/Arbitrum gas fee). This allows the Resupply staking contract to accept your reUSD.
- 03
Deposit reUSD into the staking contract
Enter the amount of reUSD you want to stake and confirm the transaction. Your staked reUSD begins accumulating rewards immediately, credited in real time per block.
- 04
Claim rewards
Rewards accumulate as RESUPPLY governance tokens and/or additional reUSD (depending on the current reward configuration). Visit the Earn section and click 'Claim rewards' periodically to collect. Claiming costs one gas transaction.
- 05
Compound your rewards
For maximum compounding efficiency: claim RESUPPLY token rewards, convert to reUSD (via a DEX like Curve or Uniswap), and restake the additional reUSD. This compounds your position. Some users use yield management tools like Yearn Finance's Resupply vaults which autocompound automatically.
- 06
Withdraw anytime
Staked reUSD can typically be withdrawn with no lockup (check protocol documentation for current parameters). Unstake your reUSD and withdraw it to your wallet whenever you choose.
The most capital-efficient Resupply strategy: deposit stablecoin Curve LP tokens as collateral → borrow reUSD → stake the borrowed reUSD. You earn Curve trading fees + CRV/CVX rewards on your collateral AND reUSD staking yield on your borrowed position. This is sometimes called 'double-dipping' and is the primary use case the protocol was designed for.
How to claim Curve and Convex rewards on your collateral
One of Resupply's key design features is that your Convex vault token collateral continues earning CRV, CVX, and trading fee rewards even while locked as collateral. These rewards accumulate and are claimable through the Resupply interface.
- 01
Check pending rewards
In the Resupply dashboard, your open position will show pending CRV, CVX, and any other pool-specific rewards that have accumulated on your collateral since you last claimed.
- 02
Claim from the position panel
Click 'Claim rewards' or equivalent in your position management panel. This harvests the accumulated CRV and CVX rewards to your wallet in one transaction.
- 03
Decide what to do with CRV rewards
CRV options: (a) sell to stablecoins for cash flow, (b) lock as veCRV on Curve Finance for boosted voting power and protocol fees (1-4 years lock), (c) deposit into Convex to get cvxCRV and earn additional yield. Locking as veCRV is the highest-conviction play but requires long-term commitment.
- 04
Decide what to do with CVX rewards
CVX options: (a) sell for stablecoins, (b) stake on Convex Finance to earn a share of Convex's protocol revenue in the form of CRV and other tokens, (c) lock vlCVX for 16 weeks to participate in Convex's governance votes on Curve gauge weights.
| Reward type | Source | What you can do with it |
|---|---|---|
| CRV tokens | Curve emissions on your LP collateral | Sell, lock as veCRV, or deposit to Convex for cvxCRV yield |
| CVX tokens | Convex emissions on your LP collateral | Sell, stake on Convex, or lock as vlCVX for governance |
| Trading fees (stablecoins) | Curve pool trading activity | Automatically compounded into your LP position |
| reUSD staking yield | Borrower interest payments | Accumulates in staking contract, claim anytime |
| RESUPPLY tokens | Protocol governance emissions | Stake for additional yield or participate in governance |
How does Resupply compare to Aave and other lending protocols?
Resupply occupies a different niche from generalised lending protocols like Aave. Understanding the comparison helps you decide which to use for your specific situation.
| Factor | Aave V3 | Resupply | crvUSD (Curve) | Prisma Finance |
|---|---|---|---|---|
| Collateral types | ETH, stablecoins, LSTs, RWAs | Curve/Convex LP tokens only | wstETH, rETH, wBTC, sfrxETH | LST tokens (stETH, rETH, etc.) |
| Borrow asset | Various (USDC, DAI, USDT, ETH...) | reUSD (protocol stablecoin) | crvUSD (Curve's stablecoin) | mkUSD / PRISMA stablecoin |
| Collateral yield | No (collateral earns nothing) | Yes (Curve/Convex yield continues) | No | No |
| Who should use it | General DeFi users | Curve/Convex yield farmers | LST holders, Curve ecosystem | LST stakers |
| Liquidation mechanism | Standard liquidation at LTV threshold | Soft liquidation range (more forgiving) | LLAMMA (soft, gradual liquidation) | Standard liquidation |
The key distinction: Aave is the broadest general-purpose lending market — ideal for borrowing against ETH, stablecoins, or liquid staking tokens. Resupply is specialised for Curve LP holders who want to retain their LP yields while accessing liquidity. They serve complementary rather than competing needs.
A sophisticated DeFi user might use both: supplying USDC on Aave to earn base yield, using the borrowed DAI from Aave to enter a Curve pool, taking the Curve LP tokens to Convex for boosted yield, then using those Convex vault tokens on Resupply to borrow reUSD for further capital deployment.
Want to go deeper on Aave? Read our full guide: How to Earn Yield on Aave. Want to understand the DEX layer underneath Resupply? See our Uniswap guide for DEX mechanics — Curve uses similar AMM principles optimised for stable assets.
What are the risks of using Resupply?
- 01
Liquidation risk
If your collateral value falls relative to your debt (e.g. ETH price drops reduce the value of your stETH/ETH Curve LP collateral), your health factor falls. At health factor 1.0, liquidators seize a portion of your collateral at a discount to repay your debt. Always maintain a health factor buffer of at least 1.5 for volatile collateral.
- 02
Smart contract risk
Resupply's contracts, plus Convex's contracts and Curve's contracts, all introduce smart contract risk. A bug in any layer could affect your funds. All layers have been extensively audited but past audits do not guarantee future security.
- 03
reUSD depeg risk
If reUSD loses its peg to USD for any reason (insufficient collateralisation, market panic), the value of your staked reUSD falls. Compare this to how DAI and USDC have maintained pegs through severe market conditions due to strong collateralisation — reUSD's collateral (Curve LP tokens) is generally robust but not immune to extreme stress.
- 04
Curve/Convex ecosystem risk
Resupply is deeply integrated with Curve and Convex. A major issue with either — governance attack, oracle failure, systemic exploit — would directly affect Resupply positions.
- 05
Interest rate risk
Borrowing rates on Resupply are variable. If borrowing demand surges (high utilisation), your interest cost increases. Always know your current borrowing cost and how much it can affect your position economics.
Resupply is an advanced DeFi protocol suited for users who already understand Curve and Convex mechanics. Using it without understanding all three protocol layers significantly increases the risk of costly mistakes, including unexpected liquidations or misunderstanding reward mechanics. Start with smaller positions while learning.
Frequently asked questions
What is reUSD and is it a safe stablecoin?
reUSD is Resupply's over-collateralised stablecoin, backed by Curve LP tokens locked in the protocol. Unlike algorithmic stablecoins (which lack real backing), reUSD is backed by tangible DeFi positions. However, no stablecoin is completely risk-free — the peg depends on the health of the collateral system and market liquidity. reUSD is designed to be more conservative than algo stablecoins but carries more complexity than USDC or USDT.
Can I use Resupply with ETH directly?
Not directly. Resupply specifically accepts Convex vault tokens (LP tokens from Curve pools, boosted through Convex) as collateral. To use ETH, you would first need to: enter an ETH-containing Curve pool (e.g. stETH/ETH), receive Curve LP tokens, deposit those into Convex, and then deposit the resulting Convex vault tokens into Resupply. Alternatively, use Aave directly for ETH-backed borrowing.
How often should I claim my Curve and Convex rewards?
This depends on gas costs versus reward value. On Ethereum mainnet, claiming may only be worth it when accumulated rewards exceed the gas cost significantly (typically when rewards exceed £20-50). On Layer 2 deployments where gas is minimal, claiming weekly or even daily is practical. For maximum efficiency, consider whether the protocol has autocompounding vaults that handle this automatically.
What happens to my collateral if I get liquidated?
If your health factor reaches 1.0, liquidators can repay a portion of your debt and receive a portion of your collateral at a discount (typically 5-10%). You lose a chunk of your collateral but your debt is reduced proportionally. Unlike some protocols, Resupply may implement soft liquidation mechanisms similar to Curve's LLAMMA system that liquidate gradually rather than all at once — check current protocol documentation for the exact mechanism.
Is there a minimum position size on Resupply?
There is no protocol-minimum set in the smart contracts, but gas costs make very small positions uneconomical. The multiple transactions required (approve Convex tokens, deposit collateral, borrow reUSD, stake reUSD) across multiple protocols mean setup gas costs can be meaningful. Positions under £500 in total value are typically not gas-efficient on Ethereum mainnet — use Layer 2 deployments if available for smaller amounts.
How does Resupply differ from MakerDAO?
MakerDAO (now rebranded Sky) allows borrowing DAI against ETH, wstETH, WBTC, and real-world assets. Resupply specifically targets Curve LP token holders and is built directly on Convex's infrastructure. Both issue over-collateralised stablecoins, but Resupply's unique value is that collateral earns yield while locked — MakerDAO collateral does not generate protocol yield for the depositor.
Can I lose more than I deposited?
No — this is not a leveraged trading platform. You can only borrow against what you deposit, and the worst case is that your collateral is liquidated to cover your debt. You cannot go below zero. However, liquidation at a discount means you receive less than the full collateral value — you may end up with less value than you started with if liquidated at an unfavourable time.