# Convex, Curve and Resupply: The Complete Guide to DeFi's Yield Flywheel > 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:** Decentralized Finance editorial team **Reviewed by:** Kaiser Khan, Editor in Chief **Category:** Top DeFi Protocols **Updated:** August 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. Curve, Convex and Resupply are wired together so tightly that you cannot properly understand any one of them alone — and the way they fit is some of the most elegant mechanism design in DeFi. Curve issues the emissions. Convex controls where they go. Resupply, built jointly by Convex and Yearn, turns the resulting yield-bearing positions into borrowable dollars without ever switching the yield off. Capital entering at any point strengthens the other two, which is why this is a genuine flywheel rather than a set of integrations. This guide covers the whole loop end to end: what each protocol contributes, how the mechanism works, why the economics are self-sustaining rather than subsidised, what participating actually involves, and what to watch. It is written for someone deciding whether to put capital in, so it is specific about both the opportunity and the risk — the two things a feature list never gives you. ## Part 1: The four protocols in one paragraph each Before the mechanism makes sense, you need the pieces. Three protocols form the loop itself, and a fourth — Yearn — co-built the protocol that closes it. Each has a full guide on this site; what follows is the minimum needed to follow the mechanism. ## Part 2: How the flywheel actually turns The loop has five stages. Each one creates the condition the next one needs, which is what makes it self-reinforcing rather than merely well-integrated. ## The five stages, in order ## Why Convex and Yearn built Resupply together Resupply is not a third-party protocol that happened to integrate with the other two. It was announced in December 2024 and launched on Ethereum mainnet on 20 March 2025 as a joint subDAO of Convex Finance and Yearn Finance — two of the longest-running teams in DeFi building something together rather than competing. The split of contributions is what makes the design work. Convex brings the veCRV bloc and the boost infrastructure, which is what makes the collateral yield high enough to lend against in the first place. Yearn brings vault architecture and yield strategy design — the discipline of making a yield-bearing position behave predictably enough that a lending protocol can price it, liquidate it and account for it safely. That second half is easy to underrate. Plenty of protocols can accept a yield-bearing token as collateral; far fewer can do it without the yield mechanism itself becoming the attack surface. Yearn has been solving exactly that problem since 2020, and Resupply is a direct application of it: collateral that compounds while it secures a loan, engineered by the team that made compounding vaults a standard DeFi primitive. For anyone assessing counterparty quality, this matters more than most factors on the list. Resupply launched with the governance, engineering and treasury backing of two established DAOs rather than an anonymous team and a fresh multisig. ## Part 3: Why the economics hold together Plenty of projects draw a flywheel. What makes this one real is that every participant has a reason to keep it turning that does not depend on any token price going up — the incentives are structural, not promotional. Curve wants deep, sticky liquidity and gets it because emissions are directed by people with a four-year time horizon. Convex wants CRV to stay locked and gets a permanent revenue share for providing the service. Resupply wants collateral that generates its own yield, because that is what allows the borrow rate to sit below it. Borrowers want leverage that does not bleed, and positive carry is exactly that. The mechanism that ties it all together is the vote market. Because veCRV decides where emissions land, and Convex holds a large bloc of it, the right to direct that bloc has a market price. vlCVX holders vote, and third parties pay them to vote a particular way — this is the bribe or incentive market, and it is the reason a CVX lock produces income beyond the protocol's own fee share. ## What positive carry means with actual numbers The clearest way to see the design is to run a position through it. The figures below are illustrative and chosen so the arithmetic is checkable — they are not current rates, which move constantly. ## Part 4: What the numbers say right now The three protocols sit at very different points in their lifecycle, and being precise about that is more useful than treating them as equals. Curve is mature infrastructure with over a billion dollars of TVL. Convex sits in the hundreds of millions and is best understood as a governance position — one of the largest veCRV blocs in existence. Resupply is the newest and smallest at tens of millions, and it has been growing through a stretch in which both Curve and Convex contracted, which is a more interesting signal than its absolute size. reUSD has also held its peg tightly, which for a stablecoin barely a year old is the metric that matters most. ## Resupply Summer and what it changes In August 2026 Convex committed to a multi-round rewards campaign for Resupply, branded Resupply Summer. The structure is escalating rounds of RSUP emissions and CVX bonuses for collateral providers and borrowers, with veCRV gauge support behind the related Curve pools. It is working. In the week following the launch, Resupply's TVL rose by a low single-digit percentage while Curve and Convex both went the other way — a genuinely good result for a campaign of this size, and a more meaningful signal than any headline reward rate. Convex committing multi-round rewards to a protocol it co-built is also a real vote of confidence, since it is spending its own emissions to do it. The test any incentive programme faces is whether deposits stay once emissions stop. Resupply is better placed than most on that question, because the underlying position pays whether or not a campaign is running — the positive carry is the product, and the rewards are on top of it. ## Part 5: How to participate, step by step If the mechanism makes sense and the risks below are acceptable to you, this is the practical sequence. Nothing here is a recommendation to do it — it is a description of what doing it involves. ## Part 6: What can go wrong Anyone putting capital in should know what they are underwriting. The flywheel is well built, and every stage still introduces a dependency — a loop that reinforces itself in one direction can unwind in the other, so these are the things worth monitoring. Smart contract risk is the one that is never zero anywhere in DeFi. Resupply had an incident in June 2025 affecting a newly deployed market, covered in full in our Resupply Finance guide; the Insurance Pool absorbed it as designed and the treasury and partners contributed to the recovery. Convex and Curve have both run without a major exploit since 2021 and 2020 respectively. ## Part 7: Where to read further This page is the map. Each protocol has a full guide, and the mechanisms referenced above have their own explanations. - Protocol guides: our Convex Finance overview covers CVX, cvxCRV and vlCVX; the Resupply Finance guide covers reUSD, RSUP and the CDP mechanics; the Curve guide covers crvUSD and Curve Lend. - Head to head: Aave vs Resupply compares general-purpose lending against yield-bearing collateral at https://decentralized-finance.io/compare/aave-vs-resupply/ - Mechanisms: see our glossary for veTokenomics, gauge, CDP, real yield, liquidation and health factor — each with a worked example. - Live data: TVL rankings at https://decentralized-finance.io/research/top-defi-protocols-by-tvl/ and the tools page for lending rates and stablecoin peg monitoring. ## Frequently asked questions - What is the Curve, Convex and Resupply flywheel? A loop in which Curve emits CRV to pools chosen by veCRV voters, Convex aggregates that voting power and passes maximum boost to depositors without requiring them to lock, and Resupply lets those boosted yield-bearing positions be used as collateral to mint reUSD — with the collateral still earning while the loan is open. - Who built Resupply? Resupply is a joint subDAO of Convex Finance and Yearn Finance, announced in December 2024 and launched on Ethereum mainnet on 20 March 2025. Convex contributes veCRV voting power and boost infrastructure; Yearn contributes vault architecture and yield strategy design. It launched with the backing of two established DAOs rather than an anonymous team. - Why is Resupply called a positive-carry stablecoin? Because the borrow rate is set as a fraction of the collateral's own yield, targeting roughly half. Where a conventional CDP charges you to borrow against an idle asset, here the collateral keeps earning more than the loan costs, so the net can be positive before the borrowed reUSD is used for anything. - Do I need to lock CRV to get the Convex boost? No. That is precisely the service Convex provides — it locks CRV permanently on the pool's behalf and passes the resulting boost through to depositors, who keep their own capital liquid. - What is Resupply Summer? A multi-round rewards campaign announced by Convex in August 2026, paying escalating RSUP emissions and CVX bonuses to Resupply collateral providers and borrowers. It is a growth programme, so a meaningful share of the advertised yield is emissions rather than fees, and it will end. - Has Resupply been exploited? Yes — a newly deployed market was exploited in June 2025. The Insurance Pool absorbed the shortfall as designed and the treasury and partners contributed to the recovery. The flaw was in oracle behaviour for new low-liquidity markets rather than the positive-carry design. Our Resupply Finance guide covers the incident and the response in full. - Is this safe? No DeFi position is safe in the sense that word usually implies. This one carries smart contract risk in three protocols, depeg risk on three stablecoins, liquidation risk if you borrow, and governance risk from concentrated voting power. The mechanism is well designed; that is a different claim from safe. - What happens when the rewards stop? The fee-funded component of the yield persists and the emissions-funded component does not. Whether deposits stay after a campaign ends is the standard test of whether an incentive programme built anything durable, and it is worth revisiting rather than predicting. ## 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 --- Canonical: https://decentralized-finance.io/article/convex-curve-resupply-ecosystem-2026/ Markdown: https://decentralized-finance.io/article/convex-curve-resupply-ecosystem-2026.md AI text endpoint: https://decentralized-finance.io/ai/protocols/convex-curve-resupply-ecosystem-2026.txt