{"id":"resupply-usd-reusd","title":"Resupply USD (reUSD)","content":"**reUSD** is the native decentralized [stablecoin](https://iq.wiki/wiki/stablecoin) of the [Resupply](https://iq.wiki/wiki/resupply) protocol. It can be borrowed by users who [leverage](https://iq.wiki/wiki/leverage) yield-bearing [stablecoin](https://iq.wiki/wiki/stablecoin) positions in external lending markets as [collateral](https://iq.wiki/wiki/collateral). The protocol is designed to enable users to earn yield on their deposited [collateral](https://iq.wiki/wiki/collateral) while simultaneously borrowing reUSD against that [collateral](https://iq.wiki/wiki/collateral).\n\n## Overview\n\nreUSD is the native decentralized [stablecoin](https://iq.wiki/wiki/stablecoin) of the [Resupply](https://iq.wiki/wiki/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](https://iq.wiki/wiki/collateral). This mechanism aims to provide users with capital efficiency by allowing them to earn yield on their deposited [collateral](https://iq.wiki/wiki/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](https://iq.wiki/wiki/resupply) operates as a Collateralized Debt Position (CDP) protocol and is described as a subDAO protocol of [Convex Finance](https://iq.wiki/wiki/convex-finance) and [Yearn Finance](https://iq.wiki/wiki/yearn) [\\[1\\]](#cite-id-mDTx03kT2i) [\\[2\\]](#cite-id-8sUI3HTpJI).\n\nThe reUSD [stablecoin](https://iq.wiki/wiki/stablecoin) is intended to maintain a stable value relative to the US Dollar [\\[3\\]](#cite-id-ptvpkwiIR8). Its stability is supported by the underlying [collateral](https://iq.wiki/wiki/collateral) and protocol mechanisms such as redemptions [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[5\\]](#cite-id-3A8mMyrIpL).\n\n## How it Works\n\nThe core function of [Resupply](https://iq.wiki/wiki/resupply) involves users depositing specific stablecoins, such as [crvUSD](https://iq.wiki/wiki/crvusd) or [frxUSD](https://iq.wiki/wiki/frxusd), into designated lending markets like Curve Lend or Fraxlend [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[5\\]](#cite-id-3A8mMyrIpL). The user's position in these lending markets then serves as [collateral](https://iq.wiki/wiki/collateral) within the [Resupply](https://iq.wiki/wiki/resupply) protocol. Against this [collateral](https://iq.wiki/wiki/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\\]](#cite-id-ID2XWYfFkP) [\\[5\\]](#cite-id-3A8mMyrIpL).\n\nThe protocol's structure is based on Collateralized Debt Positions (CDPs) [\\[5\\]](#cite-id-3A8mMyrIpL). When a user deposits [collateral](https://iq.wiki/wiki/collateral) and borrows reUSD, a CDP is created. The amount of reUSD that can be borrowed is limited by the value of the [collateral](https://iq.wiki/wiki/collateral) and the protocol's collateralization ratio requirements. If the value of the [collateral](https://iq.wiki/wiki/collateral) falls relative to the borrowed reUSD amount, the position may become subject to [liquidation](https://iq.wiki/wiki/liquidation) to protect the protocol from bad debt [\\[6\\]](#cite-id-OLAhyeOcXV) [\\[5\\]](#cite-id-3A8mMyrIpL).\n\n## REUSD Stablecoin\n\nreUSD is the native decentralized [stablecoin](https://iq.wiki/wiki/stablecoin) issued by the [Resupply](https://iq.wiki/wiki/resupply) protocol. It is designed to be soft-pegged to the US Dollar [\\[3\\]](#cite-id-ptvpkwiIR8). 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\\]](#cite-id-ID2XWYfFkP) [\\[5\\]](#cite-id-3A8mMyrIpL).\n\nRedemptions are a key mechanism for maintaining the reUSD peg. The process allows users to redeem reUSD for the underlying [collateral](https://iq.wiki/wiki/collateral) at face value, which can help [arbitrage](https://iq.wiki/wiki/arbitrage) opportunities if reUSD trades below its peg [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[5\\]](#cite-id-3A8mMyrIpL).\n\n## Collateral Types\n\nThe [Resupply](https://iq.wiki/wiki/resupply) protocol accepts specific stablecoins as [collateral](https://iq.wiki/wiki/collateral) to borrow reUSD. Initially, the approved [collateral](https://iq.wiki/wiki/collateral) types are [crvUSD](https://iq.wiki/wiki/crvusd) and [frxUSD](https://iq.wiki/wiki/frxusd) [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[5\\]](#cite-id-3A8mMyrIpL).\n\n* **crvUSD:** Deposited into a chosen Curve Lend market.\n* **frxUSD:** Deposited into a chosen Fraxlend market.\n\nThese deposited stablecoins earn yield in their respective lending markets, and the resulting yield-bearing position is used as [collateral](https://iq.wiki/wiki/collateral) within [Resupply](https://iq.wiki/wiki/resupply) [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[5\\]](#cite-id-3A8mMyrIpL).\n\n## Borrowing Rates\n\nThe borrowing rate for reUSD is dynamically calculated to remain competitive. The rate is determined as the higher value among three possibilities:\n\n1. Half of the lending rate earned by the [collateral](https://iq.wiki/wiki/collateral) in its respective market.\n2. Half of the sfrxUSD rate.\n3. A minimum rate of 2% [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[5\\]](#cite-id-3A8mMyrIpL).\n\nThis calculation aims to ensure that borrowing reUSD remains attractive relative to the yield being earned on the deposited [collateral](https://iq.wiki/wiki/collateral).\n\n## Insurance Pool\n\nThe [Resupply](https://iq.wiki/wiki/resupply) Insurance Pool serves as a safety layer for the protocol. It has two primary functions:\n\n1. **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](https://iq.wiki/wiki/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\\]](#cite-id-ID2XWYfFkP) [\\[6\\]](#cite-id-OLAhyeOcXV).\n2. **External Risk Mitigation:** The pool acts as a [reserve](https://iq.wiki/wiki/reserve) to protect the protocol against unforeseen risks associated with the approved [collateral](https://iq.wiki/wiki/collateral) assets or external lending markets. If a [collateral](https://iq.wiki/wiki/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](https://iq.wiki/wiki/collateral). The pool would then attempt to recover value by selling the distressed [collateral](https://iq.wiki/wiki/collateral), aiming to prevent bad debt for the protocol [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[6\\]](#cite-id-OLAhyeOcXV).\n\nUsers 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](https://iq.wiki/wiki/portion) of the protocol's revenue and RSUP emissions [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[6\\]](#cite-id-OLAhyeOcXV). 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\\]](#cite-id-OLAhyeOcXV).\n\n## Governance (RSUP Token)\n\nGovernance of the [Resupply](https://iq.wiki/wiki/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\\]](#cite-id-x9YqfCTvtb) [\\[8\\]](#cite-id-LO5P7NQBw6). [Staking](https://iq.wiki/wiki/staking) RSUP tokens is required to participate in governance voting [\\[8\\]](#cite-id-LO5P7NQBw6). 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\\]](#cite-id-BsSptQXNW5). The [staking](https://iq.wiki/wiki/staking) contract operates on a one-week epoch system, and new stakers must wait one epoch before being granted voting power [\\[8\\]](#cite-id-LO5P7NQBw6).\n\nThe RSUP [tokenomics](https://iq.wiki/wiki/tokenomics) include mechanisms for emissions and revenue distribution [\\[9\\]](#cite-id-BsSptQXNW5) [\\[10\\]](#cite-id-ljvlTwjxqE). RSUP has no maximum supply and follows a set inflation schedule, with emissions directed at voting incentives, the insurance pool, and CDPs [\\[9\\]](#cite-id-BsSptQXNW5) [\\[10\\]](#cite-id-ljvlTwjxqE). 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\\]](#cite-id-ljvlTwjxqE). Emissions directed at borrowers are correlated to the amount of revenue the lending pool generates for the protocol [\\[10\\]](#cite-id-ljvlTwjxqE).\n\n## Partnerships\n\n[Resupply](https://iq.wiki/wiki/resupply) was developed by teams associated with [Convex Finance](https://iq.wiki/wiki/convex-finance) and [Yearn Finance](https://iq.wiki/wiki/yearn) [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[1\\]](#cite-id-mDTx03kT2i) [\\[2\\]](#cite-id-8sUI3HTpJI). These entities are described as key partners in the project's creation.\n\n## Security\n\nThe [Resupply](https://iq.wiki/wiki/resupply) protocol utilizes immutable and non-custodial smart contracts [\\[4\\]](#cite-id-ID2XWYfFkP). The [smart contracts](https://iq.wiki/wiki/smart-contract) have undergone reviews by peers and external security auditors [\\[4\\]](#cite-id-ID2XWYfFkP) [\\[11\\]](#cite-id-zBuMmGbxWt). The protocol also maintains a bug bounty program [\\[12\\]](#cite-id-pXQ3OAI0Yo).\n\n## History and Milestones\n\n[Resupply](https://iq.wiki/wiki/resupply) was introduced in December 2024 [\\[1\\]](#cite-id-mDTx03kT2i) [\\[2\\]](#cite-id-8sUI3HTpJI). The protocol's [smart contracts](https://iq.wiki/wiki/smart-contract) went live in March 2025 [\\[13\\]](#cite-id-i2G7fcd6SP). with the official [dApp](https://iq.wiki/wiki/decentralized-application) launch occurring on March 20, 2025 [\\[14\\]](#cite-id-X54CXFl1m3).\n\nFollowing 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](https://iq.wiki/wiki/collateral) [\\[15\\]](#cite-id-IxgR8cvUGx). By April 8, 2025, the protocol had generated $345k in total fees since launch [\\[16\\]](#cite-id-BnqXCGcuMf).\n\n## Security Incident\n\nIn late June 2025, the [Resupply](https://iq.wiki/wiki/resupply) protocol experienced a security exploit resulting in a loss of approximately $9.5 million to $10 million [\\[17\\]](#cite-id-Q8VqtGivtL) [\\[18\\]](#cite-id-abHv8sRhFr) [\\[19\\]](#cite-id-UeyXg0RQSl). The attacker targeted a vulnerability within the [crvUSD](https://iq.wiki/wiki/crvusd)-wstUSR pair, manipulating the share price of cvcrvUSD (a wrapped version of [crvUSD](https://iq.wiki/wiki/crvusd) staked in [Convex Finance](https://iq.wiki/wiki/convex-finance)) by sending donations to its vault [\\[17\\]](#cite-id-Q8VqtGivtL) [\\[18\\]](#cite-id-abHv8sRhFr). This artificially inflated price was then used to exploit an edge case in the platform’s [oracle](https://iq.wiki/wiki/oracle) and exchange rate calculations within the ResupplyPair smart contract, allowing the attacker to borrow a large amount of reUSD with minimal [collateral](https://iq.wiki/wiki/collateral) [\\[17\\]](#cite-id-Q8VqtGivtL) [\\[18\\]](#cite-id-abHv8sRhFr) [\\[19\\]](#cite-id-UeyXg0RQSl). The missing funds primarily originated from the wstUSR market [\\[17\\]](#cite-id-Q8VqtGivtL).\n\nFollowing the incident, [Resupply](https://iq.wiki/wiki/resupply) acknowledged the breach, ceased trading the affected pair, and paused the compromised contract [\\[17\\]](#cite-id-Q8VqtGivtL) [\\[18\\]](#cite-id-abHv8sRhFr). The team stated that a full post-mortem would be shared after a complete analysis [\\[18\\]](#cite-id-abHv8sRhFr).\n\nTo address the loss, [Resupply](https://iq.wiki/wiki/resupply)'s treasury contributed 2.86 million reUSD, leaving a remaining loss of 7.13 million reUSD [\\[19\\]](#cite-id-UeyXg0RQSl). 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](https://iq.wiki/wiki/portion) of the remaining debt [\\[19\\]](#cite-id-UeyXg0RQSl). 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\\]](#cite-id-UeyXg0RQSl). The recovery plan requires approval via a community vote and is set to begin three days after a successful vote [\\[19\\]](#cite-id-UeyXg0RQSl). Additionally, [Resupply](https://iq.wiki/wiki/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\\]](#cite-id-UeyXg0RQSl).","summary":"Resupply USD (reUSD) is a decentralized stablecoin issued by the Resupply protocol.","images":[{"id":"QmU2s7dTXS2AvKtajf6sLDXuMn4yi1eGLxicaApJ1EZDyN","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[{"id":"Stablecoins"},{"id":"Protocols"},{"id":"Ethereum"}],"media":[{"id":"QmbetfFJ6TJ3eEwkWz2p2TSwMXpi7wy4wgPLUmF2jDWEpC","name":"above-the-fold.svg","caption":"","thumbnail":"QmbetfFJ6TJ3eEwkWz2p2TSwMXpi7wy4wgPLUmF2jDWEpC","source":"IPFS_IMG"},{"id":"QmXU7r3pXm4HkSihWJDF5TGeffFAQbXqorGnBX8HtV4abL","name":"Cópia de Design sem 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CoinGecko\",\"timestamp\":1751386819938},{\"id\":\"ID2XWYfFkP\",\"url\":\"https://resupply.fi/\",\"description\":\"Resupply official website\",\"timestamp\":1751386819938},{\"id\":\"3A8mMyrIpL\",\"url\":\"https://docs.resupply.fi/resupply-protocol/collateralized-debt-positions\",\"description\":\"Resupply Docs: Collateralized Debt Positions\",\"timestamp\":1751386819938},{\"id\":\"OLAhyeOcXV\",\"url\":\"https://docs.resupply.fi/resupply-protocol/insurance-pool\",\"description\":\"Resupply Docs: Insurance Pool\",\"timestamp\":1751386819938},{\"id\":\"x9YqfCTvtb\",\"url\":\"https://resupply.fi/governance/rsup\",\"description\":\"RSUP staking page\",\"timestamp\":1751386819938},{\"id\":\"LO5P7NQBw6\",\"url\":\"https://docs.resupply.fi/resupply-governance/governance-voting\",\"description\":\"Resupply Docs: Governance voting\",\"timestamp\":1751386819938},{\"id\":\"BsSptQXNW5\",\"url\":\"https://docs.resupply.fi/resupply-governance/tokenomics\",\"description\":\"Resupply Docs: Tokenomics\",\"timestamp\":1751386819938},{\"id\":\"ljvlTwjxqE\",\"url\":\"https://docs.resupply.fi/resupply-governance/emissions\",\"description\":\"Resupply Docs: Emissions\",\"timestamp\":1751386819938},{\"id\":\"zBuMmGbxWt\",\"url\":\"https://docs.resupply.fi/faq/audits\",\"description\":\"Resupply Docs: Audits\",\"timestamp\":1751386819938},{\"id\":\"pXQ3OAI0Yo\",\"url\":\"https://docs.resupply.fi/faq/bug-bounties\",\"description\":\"Resupply Docs: Bug Bounties\",\"timestamp\":1751386819938},{\"id\":\"i2G7fcd6SP\",\"url\":\"https://x.com/ResupplyFi/status/1900022554074448108\",\"description\":\"Resupply X post about contracts live\",\"timestamp\":1751386819938},{\"id\":\"X54CXFl1m3\",\"url\":\"https://x.com/ResupplyFi/status/1902699959952044262\",\"description\":\"Resupply X post announcing live dApp\",\"timestamp\":1751386819938},{\"id\":\"IxgR8cvUGx\",\"url\":\"https://x.com/ResupplyFi/status/1905181507255234713\",\"description\":\"Resupply X post about first week stats\",\"timestamp\":1751386819938},{\"id\":\"BnqXCGcuMf\",\"url\":\"https://x.com/ResupplyFi/status/1909604492074537435\",\"description\":\"Resupply X post about fees generated\",\"timestamp\":1751386819938},{\"id\":\"Q8VqtGivtL\",\"url\":\"https://www.theblock.co/post/359764/resupply-exploited-blocksec\",\"description\":\"The Block article on exploit\",\"timestamp\":1751386819938},{\"id\":\"abHv8sRhFr\",\"url\":\"https://cryptorank.io/news/feed/2aa30-stablecoin-protocol-resupply-exploited-for-9-5m-after-attacker-inflates-token-price\",\"description\":\"CryptoRank article on exploit\",\"timestamp\":1751386819938},{\"id\":\"UeyXg0RQSl\",\"url\":\"https://www.cryptotimes.io/2025/06/30/resupply-plans-6m-reusd-token-burn-to-recover-from-10m-hack/\",\"description\":\"Crypto Times article on recovery plan\",\"timestamp\":1751386819938}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmVGrBgRDVzTSMMogE396QF5iUaH7eNXYwii4jJR6xiV7U\""},{"id":"commit-message","value":"\"Update reUSD article content with details on protocol, mechanics, and security incident.\""},{"id":"previous_cid","value":"QmVGrBgRDVzTSMMogE396QF5iUaH7eNXYwii4jJR6xiV7U"}],"events":[{"id":"88cada05-378d-435b-9ea5-59c32f11012c","date":"2024-12","title":"Resupply Launch","type":"CREATED","description":"The launch of 'Resupply' as a decentralized stablecoin protocol\n\n","link":"https://coinmarketcal.com/en/event/resupply-launch-236783","multiDateStart":null,"multiDateEnd":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum"],"founders":["resupply"],"speakers":[]}}