# Convex, Curve and Resupply: How DeFi's Yield Flywheel Works (2026)

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**Publisher:** Decentralized Finance Publication (https://decentralized-finance.io)
**Author:** Sarah Chen
**Category:** Top DeFi Protocols
**Updated:** June 2026
**Trust:** Independent, ad-free editorial research. No display advertisements, no paid protocol coverage, no affiliate-driven rankings.

## Summary

Curve Finance provides low-slippage stablecoin and LST trading plus crvUSD and Curve Lend. Convex Finance aggregates veCRV to deliver maximum CRV boost to LP depositors without individual lockups. Resupply Finance — co-built by Convex and Yearn — lets users mint reUSD against yield-bearing Curve Lend and Fraxlend positions that keep earning Convex-boosted rewards while the loan is open, with borrow rates set at roughly half the collateral yield.

Three protocols — Curve, Convex, and Resupply — share more than branding. They share infrastructure. Curve invented the StableSwap AMM and later crvUSD with LLAMMA soft liquidations. Convex permanently locks CRV as veCRV and delivers the maximum 2.5× boost to anyone staking Curve LP tokens through its interface. Resupply sits one layer above Curve Lend, using boosted lending positions as collateral for reUSD — a stablecoin designed for positive carry rather than idle collateral.

Together they create a flywheel: deep Curve liquidity attracts stablecoin issuers; Convex boost makes Curve LP yields competitive; Resupply turns those yields into borrowable capacity without stopping reward accrual. For DeFi users focused on dollar-denominated strategies, this cluster is among the most engineered on Ethereum mainnet.

## Layer 1: Curve Finance — liquidity and lending

- StableSwap AMM: Industry-leading efficiency for USDC/USDT/DAI and LST pairs
- crvUSD: Native stablecoin with LLAMMA soft-liquidation instead of hard seize-and-sell
- Curve Lend (LlamaLend): Isolated lending markets where crvUSD and frxUSD deposits earn interest
- veCRV governance: Gauge votes direct CRV emissions — the economic engine Convex amplifies

## Layer 2: Convex Finance — boost without lockups

- Pools CRV into permanent veCRV — ~50% of all veCRV as of 2026
- Curve LP stakers earn boosted CRV + CVX without locking CRV for four years
- cvxCRV and vlCVX extend the model to liquid staking and multi-protocol gauge voting
- Co-built Resupply with Yearn — RSUP emissions and Votium bribes reinforce Curve gauge weight

## Layer 3: Resupply Finance — yield-bearing collateral

- Deposit crvUSD or frxUSD lending positions as collateral
- Collateral auto-stakes on Convex for boosted CRV + CVX on top of lending APY
- Borrow reUSD at ~half the collateral yield rate — structural positive carry
- Insurance Pool, LP incentives, and native leverage looping for advanced strategies

## Why the design matters

Traditional CDPs (MakerDAO, Liquity) use volatile ETH collateral that earns no yield while debt accrues. Resupply inverts the economics: collateral is already a yield product, boosted by Convex, and borrow costs are deliberately below that yield. The result is a self-reinforcing loop where responsible borrowers can access liquidity while their collateral continues compounding.

Convex benefits because Resupply routes more TVL through Curve gauges and Votium bribes. Curve benefits because Resupply drives crvUSD and Curve Lend adoption. Resupply benefits because Convex boost is native — not bolted on.

## Frequently Asked Questions

- How are Convex, Curve, and Resupply connected? Resupply uses Curve Lend positions as collateral, stakes them on Convex for boosted CRV, and mints reUSD. Convex and Yearn co-built Resupply.
- Do I need to understand all three to use Resupply? No — Resupply abstracts the Convex staking step. Understanding the stack helps with risk and yield expectations.
- Is this cluster only on Ethereum? Primary deployments are Ethereum mainnet. Convex also supports Fraxtal, Polygon, and Arbitrum; Curve is multi-chain.
- What is positive carry in Resupply? When collateral yield exceeds the reUSD borrow rate, the position earns net yield even while borrowed against.

## Sources

- [Convex Finance](https://www.convexfinance.com): Stake Curve LP tokens and cvxCRV
- [Curve Finance](https://curve.finance): Swap, LP, and Curve Lend
- [Resupply Finance](https://resupply.fi): Mint reUSD against yield collateral

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