# What is Resupply Protocol? DeFi Protocol Guide > Decentralized Finance Publication (decentralized-finance.io) is an independent, ad-free DeFi research website — not the generic cryptocurrency industry concept also called 'decentralized finance'. **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 Resupply Protocol lets users borrow reUSD against yield-bearing stablecoin collateral at roughly half the collateral's yield rate — creating positive carry. Co-built by Convex and Yearn; collateral earns Convex-boosted CRV while loans are outstanding. Resupply Protocol is a decentralized finance (DeFi) lending protocol built on Ethereum that reimagines the concept of Infinite Banking through blockchain technology and smart contracts. Traditional Infinite Banking allows individuals to borrow against whole life insurance cash value while that value keeps compounding — Resupply transplants this idea into the open, permissionless world of DeFi, replacing insurance policies with yield-bearing stablecoin collateral and smart-contract-enforced interest rates. ## The Core Mechanic: Borrow at Half the Yield Resupply's defining innovation is a borrowing rate that is structurally set at half of the current lending rate of the deposited collateral. If a stablecoin like sfrxUSD offers 10% APY, Resupply allows holders to borrow its native stablecoin — reUSD — against that collateral at just 5%. The spread between what your collateral earns and what your loan costs creates a positive carry: your collateral grows faster than the debt accrues, enabling a self-sustaining financial cycle akin to Infinite Banking. This mechanism reduces the need for intermediaries, lowers costs, and makes the entire process transparent and auditable on-chain. ## How to Use Resupply The workflow is designed to be straightforward: - Deposit Collateral: Deposit yield-bearing stablecoins such as sfrxUSD into the Resupply protocol as collateral. - Borrow reUSD: Borrow reUSD — Resupply's native stablecoin — at an interest rate equal to half of the collateral's lending APY. - Utilize Borrowed Funds: Deploy reUSD for further investments, liquidity provision, hedging, or personal expenses. - Repay and Repeat: As collateral yield exceeds borrowing costs, repay loans and re-execute the cycle, compounding returns over time. ## The reUSD Stablecoin reUSD is Resupply's native overcollateralized stablecoin, pegged to the US dollar. A redemption mechanism helps maintain the peg and ensures protocol stability without relying purely on minting or burning — reducing risks associated with excessive leverage. Once minted, reUSD can be put to work in two primary ways within the ecosystem: - Insurance Pool: Supply reUSD to earn RSUP governance tokens, protocol fees, and a share of liquidated collateral. The Insurance Pool receives 25% of all RSUP token emissions. - Liquidity Pools (LPs): Provide liquidity to reUSD trading pools to earn 50% of RSUP emissions, deepening protocol liquidity and earning yield simultaneously. ## RSUP: Governance and Value Accrual RSUP is Resupply's governance token, giving holders the ability to vote on protocol parameters, collateral types, fee structures, and emission distribution. Beyond governance, RSUP accrues protocol revenue: fees generated by borrowing activity flow back to RSUP stakers and Insurance Pool participants, aligning token holders with the long-term health of the protocol. As of early 2025, RSUP staked amounts exceed 100% of market cap, reflecting strong community commitment to the protocol's governance and fee-sharing model. ## Advantages Over Traditional Infinite Banking - No Intermediaries: Eliminates insurance companies, agents, and administrative overhead — all operations are governed by transparent smart contracts. - Greater Flexibility: Stablecoins and smart contracts allow real-time, granular management of assets and liabilities without cumbersome paperwork. - On-Chain Transparency: Every position, fee, and liquidation is verifiable on the Ethereum blockchain. - Sustainable Yield Structure: The half-rate borrowing design is structurally sustainable — the collateral's yield creates a built-in buffer against borrowing costs. ## Protocol Data (Source: DeFiLlama) The following metrics are sourced from DeFiLlama and reflect Resupply's on-chain performance. Data is approximate and subject to change. - Total Value Locked (TVL): $39.45M — deployed entirely on Ethereum - Fees (Annualized): $864,028 - Fees (30-day): $70,822 - Fees (7-day): $15,994 - Fees (24-hour): $2,320 - Cumulative Fees: $4.03M - Revenue (Annualized): $648,003 - Revenue (30-day): $53,115 - Revenue (24-hour): $1,740 - Cumulative Revenue: $3.02M - Holders Revenue (Annualized): $604,815 - Cumulative Holders Revenue: $2.82M - Incentives (Annualized): $1.11M - RSUP Market Cap: $2.06M - RSUP Price: $0.097 (ATH: $4.59) - Fully Diluted Valuation (FDV): $7.1M - RSUP Staked: $2.11M (≈102% of market cap) - RSUP Liquidity (Curve DEX): $3.3M - Treasury: $228,098 - Category: Lending — Ethereum ## Conclusion Resupply Protocol brings an age-old wealth-building concept — Infinite Banking — into the decentralized finance era. By structurally pricing borrowing at half the yield of collateral, it creates a transparent, permissionless environment where users can access liquidity without sacrificing the growth of their assets. With a growing TVL, meaningful on-chain fee generation, and a governance model that funnels revenue back to token holders, Resupply represents a thoughtful evolution in DeFi lending design. View live Resupply protocol data on DeFiLlama: defillama.com/protocol/resupply ## Sources - [Resupply Protocol](https://resupply.finance/): Official Resupply Protocol app — borrow reUSD against yield-bearing collateral - [Resupply on DeFiLlama](https://defillama.com/protocol/resupply): Live TVL, fees, revenue, and token metrics for Resupply Protocol --- Canonical: https://decentralized-finance.io/article/resupply/ AI text endpoint: https://decentralized-finance.io/ai/protocols/resupply.txt