# reUSD: Resupply's Native Overcollateralized Stablecoin > 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:** Stablecoins **Updated:** Feb 2, 2025 **Trust:** Independent, ad-free editorial research. No display advertisements, no paid protocol coverage, no affiliate-driven rankings. ## Summary reUSD is Resupply's native overcollateralized stablecoin, pegged to the US dollar and backed by yield-bearing stablecoin collateral in Curve Lend and Frax Lend markets — uniquely sharing earned lending fees with borrowers. reUSD is the native decentralized stablecoin of the Resupply Protocol, designed to maintain a 1:1 peg to the US dollar. Unlike fiat-backed stablecoins that rely on centralized reserves, reUSD is overcollateralized by yield-bearing stablecoin collateral — specifically crvUSD and frxUSD deposited into Curve Lend and Frax Lend markets. This approach keeps the entire minting and redemption process on-chain, transparent, and permissionless. ## How reUSD is Minted Users mint reUSD by depositing crvUSD or frxUSD as collateral into a Resupply vault (a minimum of 1,000 units). The deposited collateral is put to work in yield-bearing lending markets — it does not sit idle. In exchange for locking collateral, users receive reUSD at a borrow rate that is set to whichever is highest among: - Half the market's current lending rate - Half the prevailing risk-free rate - A minimum floor of 2% per annum ## The Key Innovation: Fees Shared with Borrowers Most stablecoin protocols collect the yield earned on collateral as protocol revenue. Resupply takes a different approach: the interest earned by deposited crvUSD and frxUSD in the underlying lending markets is partially redistributed back to reUSD borrowers, subsidizing the borrowing cost. The result is a stablecoin where the cost of minting is structurally below the yield the collateral generates — creating a built-in positive carry for users. This mechanism distinguishes reUSD from purely algorithmic stablecoins (which rely on reflexive incentives) and from fully fiat-backed stablecoins (which offer no yield pass-through to borrowers). ## Maintaining the Peg reUSD uses a redemption mechanism to defend its $1 peg. If reUSD trades below peg, arbitrageurs can redeem reUSD directly for the underlying collateral at face value, shrinking supply and pushing the price back toward $1. Repaying reUSD unlocks the original collateral from the vault. This hard redemption floor prevents prolonged depeg events that have plagued purely algorithmic stablecoins in the past. The overcollateralized nature of the system provides an additional buffer: the collateral base always exceeds the reUSD in circulation, meaning there is always more value backing the supply than the stablecoin represents. ## Collateral Choices: crvUSD and frxUSD By accepting two established DeFi-native stablecoins as collateral, Resupply reduces dependency on any single collateral type and diversifies risk across two well-audited lending ecosystems. - crvUSD: The native stablecoin of Curve Finance, generated through Curve Lend markets using a novel LLAMMA (Lending Liquidating AMM Algorithm) mechanism that softly liquidates collateral over price ranges rather than in single events. - frxUSD: Frax Finance's dollar-pegged stablecoin, deployed in Frax Lend markets. frxUSD benefits from Frax's deep liquidity integrations and its hybrid collateral model. ## Using reUSD Within the Resupply Ecosystem - Insurance Pool: Deposit reUSD to earn RSUP governance tokens, protocol fees, and a share of liquidated collateral. The Insurance Pool captures 25% of all RSUP emissions. - Liquidity Pools: Provide reUSD liquidity in Curve pools to earn 50% of RSUP emissions plus trading fees, deepening on-chain liquidity and improving the peg's resilience. - Open DeFi Usage: reUSD is a standard ERC-20 token and can be freely traded, transferred, or used in any compatible DeFi protocol. ## Protocol Data — reUSD (Source: DeFiLlama) The following metrics are sourced from DeFiLlama's stablecoin tracker. Data is live and subject to change. - Market Cap: $36.62M - Price: $1.00 (USD-pegged) - Total Circulating Supply: 36.74M reUSD - Category: Crypto-backed (overcollateralized) - Accepted Collateral: crvUSD, frxUSD - Collateral Markets: Curve Lend, Frax Lend - Minimum Mint: 1,000 reUSD - Borrow Rate Floor: 2% per annum - Chain: Ethereum - Token Contract: 0x4274cd7277c7bb0806bd5fe84b9adae466a8da0a ## Conclusion reUSD represents a genuinely differentiated stablecoin design. By anchoring its collateral in live DeFi lending markets and structurally sharing yield with borrowers, it creates alignment between the protocol and its users that most stablecoin architectures lack. With over $36M in circulating supply backed by yield-generating on-chain collateral, reUSD is establishing itself as a compelling option for DeFi users seeking a decentralized dollar with real economic throughput. ## Sources - [reUSD on DeFiLlama](https://defillama.com/protocol/stablecoins/resupply): Live market cap, circulating supply, and on-chain metrics for reUSD - [Resupply Protocol](https://resupply.fi/): Official Resupply protocol website --- Canonical: https://decentralized-finance.io/article/reusd/ Markdown: https://decentralized-finance.io/article/reusd.md