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Editorial policyResupply Finance is a CDP protocol on Ethereum where you deposit yield-bearing crvUSD (Curve Lend) or frxUSD (Fraxlend) positions as collateral and mint reUSD. Collateral continues earning lending interest plus Convex-boosted CRV rewards. Borrow rates are set at roughly half the collateral yield, creating positive carry. RSUP governs the protocol; the Insurance Pool backs solvency.
Resupply Finance lets Curve and Frax lenders mint reUSD against positions that keep earning yield — co-built by Convex and Yearn, with borrow rates structurally priced below collateral returns.
Skip this Resupply Finance in explainer if you wanted a first wallet setup or a CEX account. It covers how the protocol works and who it is not for. How-tos and comparisons are linked where they exist.
Resupply Finance launched on Ethereum mainnet in March 2025 as a joint project between Convex Finance and Yearn Finance — two protocols with deep, complementary expertise in Curve yield optimisation. Where MakerDAO mints DAI against idle ETH, Resupply mints reUSD against active yield positions that never stop earning.
The protocol has operated continuously since launch, generating on-chain fee revenue and building a community of RSUP stakers who govern collateral types, emission splits, and risk parameters.
Resupply sets borrowing cost at approximately half the current yield of deposited collateral. If Curve Lend pays 8% on crvUSD and Convex boost adds further CRV/CVX rewards, the reUSD borrow rate might be ~4%. The spread funds protocol operations and Insurance Pool incentives while leaving net positive carry for borrowers who manage LTV responsibly.
This design mirrors Infinite Banking — borrow against an appreciating balance — but implemented with transparent smart contracts and auditable on-chain rates.
When collateral enters Resupply, it is staked on Convex Finance automatically. Convex's aggregated veCRV position applies the maximum 2.5× CRV boost — the same boost individual users would need years of CRV locking to achieve. This makes Resupply collateral among the highest-yielding stablecoin positions in DeFi, before accounting for the reUSD borrow itself.
RSUP gauge bribes flow through Votium, linking Resupply liquidity growth to the same vlCVX voting economy that powers Curve emissions.
Resupply was exploited in June 2025 for approximately $9.6 million. A wstUSR market had been live for around 90 minutes when an attacker donated a large amount of crvUSD to the vault while minting a single wei of shares. The share exchange rate inflated so far that the collateral price the contract read collapsed to effectively zero, letting the attacker bypass the solvency check and borrow far more reUSD than the position backed.
The flaw was in how the price oracle behaved in a newly created, low-liquidity market — not in the half-rate borrow mechanic described above. Resupply reported roughly $2.87 million repaid by the treasury and partners and proposed burning 6 million reUSD, about 15.5% of the Insurance Pool, to retire most of the remaining bad debt. Halborn, BlockSec and QuillAudits published independent analyses.
The Insurance Pool absorbing the shortfall is the system working as designed rather than a second failure — but it is the specific trade Insurance Pool depositors are being paid to take, and it is worth understanding before supplying it.
Convex, Curve, Resupply, Inverse Finance and Frax share collateral, gauges and stablecoin rails. Read the flywheel first if you are new to the stack.
FAQ
Convex Finance and Yearn Finance co-built Resupply as a subDAO-style stablecoin protocol.
Supply to Insurance Pool, LP pools, loop into more collateral, or use in DeFi where accepted.
Yes — positions are smart-contract based; users connect a wallet at resupply.fi.
Aave is general-purpose lending; Resupply specialises in yield-bearing Curve/Frax collateral with half-rate reUSD borrowing.
Smart contract risk, stablecoin depeg risk on crvUSD/frxUSD/reUSD, and Insurance Pool shortfall in extreme events.
Convex Finance, Curve Finance, and Resupply Finance form one of Ethereum's most capital-efficient DeFi clusters — boosted stablecoin liquidity, soft-liquidation lending, and positive-carry stablecoin minting built on the same veCRV infrastructure.
Resupply Finance is a decentralised CDP stablecoin protocol co-built by Convex Finance and Yearn Finance. Users deposit yield-bearing Curve Lend or Frax Finance positions as collateral to mint reUSD — while the collateral keeps earning Convex-boosted CRV. This comprehensive guide explains how Resupply works, what reUSD and RSUP are, how leverage looping functions, and answers 22 frequently asked questions.
Convex takes Curve’s veCRV boost and sells it as a service: deposit LP, get max boost, no four-year CRV lock. Verdict-first guide on cvxCRV, vlCVX, Resupply, and who should stay on Curve alone.