What reUSD does
reUSD is the stablecoin minted by Resupply, a decentralised lending protocol built by developers with deep roots in the Curve and Convex ecosystem. Rather than accepting only plain assets like ETH or BTC as collateral, Resupply is designed around yield-bearing collateral — tokens like liquid-staked ETH derivatives and other interest-accruing wrappers — letting borrowers mint reUSD against positions that are already earning yield elsewhere, similar in spirit to crvUSD's collateral design but built as a standalone protocol.
Borrowers deposit approved yield-bearing collateral into isolated lending pairs, each with its own risk parameters, interest rate model and liquidation thresholds, and mint reUSD against it up to a set loan-to-value ratio. The isolated-pair structure is meant to contain risk from any single volatile or exotic collateral type, so a problem in one market shouldn't automatically cascade into others — in theory.
reUSD circulates as the liquid unit across Resupply's ecosystem and any DeFi integrations that adopt it, with liquidity pools (often on Curve, given the team's lineage) helping anchor its dollar peg through arbitrage.
Risks worth knowing
Resupply suffered a significant exploit in 2025 targeting one of its isolated lending pairs, where a collateral pricing or configuration flaw was used to drain funds from the affected market — a stark reminder that "isolated" risk containment depends entirely on each pair's parameters being set correctly, and that a flaw in one market's oracle or collateral logic can still result in real losses even if other pairs are untouched. Any newer protocol handling yield-bearing collateral carries elevated smart contract and integration risk simply because that collateral type is more complex to price and liquidate than plain ETH or stablecoins.
Peg stability for reUSD depends on sufficient liquidity depth and active arbitrage, both of which can thin out after a security incident dents confidence. Anyone holding or using reUSD should check which collateral markets currently back circulating supply, how those markets were affected by the past exploit, and what remediation or insurance measures the protocol has put in place since.