Resupply: A Curve Ecosystem Success Story

What if you could earn yield while borrowing assets?

Resupply makes this possible. Built directly on Curve’s Llamalend lending markets, it lets users supply crvUSD, take the resulting yield-bearing vault token, and use it as collateral to mint a new stablecoin: reUSD.

The result is higher capital efficiency for users, deeper Llamalend liquidity, and more demand for crvUSD, all built on top of Curve’s rails.

How Resupply Works: A Practical Example

Let’s walk through how a typical user can earn yield while borrowing:

1. Supply to Llamalend:The user supplies crvUSD (or other supported assets) to Curve’s Llamalend. This deposit earns lending yield, and even CRV incentives that can be boosted via Convex on supported markets.
2. Use the vault token as collateral to mint reUSDThe user takes the vault token to Resupply to use as collateral to borrow reUSD. This results in the user still earning yield on their vault token, while having access to newly borrowed funds.
3. (Optional) Loop to increase exposureThe user can swap reUSD → crvUSD, deposit it again into Llamalend, and repeat the process. This boosts yield and capital efficiency, but also increases liquidation risk, so managing the LTV ratio is critical.

Why the Yield is Higher Than the Borrowing Costs

Resupply is designed so that the interest paid on borrowed reUSD is typically lower than the yield earned on the vault token used as collateral. This is what enables users to earn more than they pay — a positive carry.

The interest rate is calculated as the highest of:

• 50% of the underlying Llamalend supply rate (what your collateral is earning)
• 50% of a benchmark “risk‑free” rate, like the sfrxUSD APY
• A flat 2% minimum

This structure ensures that under normal conditions, most users earn more on their supplied collateral than they pay to borrow.

Supported markets: Resupply supports a range of Curve’s Llamalend markets, includingsDOLA, sUSDe, sUSDS, sfrxUSD, WETH, wstETH, USDe, WBTC, and selected Frax markets.

Why This Matters for Curve & Why Builders Choose It

Resupply strengthens Curve’s stablecoin ecosystem by amplifying usage, revenue, and composability:

• More crvUSD demand: To borrow reUSD, users first supply crvUSD to Llamalend, increasing demand and growing crvUSD circulation
• Deeper Llamalend liquidity: Additional deposits expand the lending side, enabling better rates and larger borrow capacity across supported markets, including ETH and BTC.
• Value to veCRV holders: More borrowing activity increases protocol revenue, which flows to veCRV holders through fee sharing.
• Composability drives new use cases: Builders can launch Curve pools and Llamalend markets around stable or yield-bearing assets, and tap into Curve’s liquidity engine to support new primitives.
• LLAMMA enables higher LTVs: Resupply chose Curve because its unique liquidation engine (LLAMMA) allows for especially high loan-to-value ratios, while reducing liquidation risk through gradual conversions.

In short, Resupply doesn't extract value from Curve, it compounds it. The system creates a feedback loop where user-level efficiency translates into protocol-level growth.

Early Impact & Future Outlook

Resupply had an immediate and measurable impact on Curve’s lending ecosystem:

• Llamalend TVL nearly tripled, jumping from $37M to over $181M within four weeks of launch and is currently sitting at around $215M.
• crvUSD supply almost doubled, rising from $61M to $121M over the same period

This early traction reflects strong user demand for capital-efficient borrowing and how composable protocols like Resupply can rapidly amplify growth across Curve’s stablecoin stack.

After the initial launch sprint, growth settled into a steadier phase. The early looping meta where you supply crvUSD → borrow reUSD → swap to crvUSD → resupply, amplified leverage but added persistent sell pressure on reUSD. This put downward pressure on the peg, which made looping (or simply swapping reUSD for other crypto assets) less attractive and slowed the rate of expansion.

Resupply’s next deployment, savings-reUSD (a yield-bearing version of reUSD), is designed to flip that dynamic. By streaming protocol revenue directly to holders, it creates organic demand for reUSD without using $RSUP token incentives. sreUSD earns from two sources: a baseline 15% of protocol revenue plus an additional “off-peg” stream that scales with how far reUSD trades below $1 and tapers as it returns to peg. More details are available on the Resupply Governance Forum.

This design create a feedback loop where reUSD demand → stronger peg stability → looping becomes attractive again → larger Llamalend deposits and healthier utilization → lower borrowing rates → more sustainable crvUSD issuance. In short, sreUSD aims to create a virtuous cycle that grows Curve’s Llamalend TVL and stabilizes Curve’s broader stablecoin stack.

The on-chain Proposal #17 to ship sreUSD is already live and currently being voted on.

Building on the Biggest Stablecoin House

Resupply is a clear example of how new stablecoin and lending primitives can be built directly on top of Curve’s infrastructure. It uses yield-bearing vault tokens from Llamalend as productive collateral, mints a capital-efficient stablecoin (reUSD), and feeds liquidity and revenue back into Curve.

For builders, Curve offers more than just liquidity, as it provides:

• Permissionless markets through Llamalend
• Deep liquidity across stable and volatile assets
• Native Oracles with predictable pricing behavior
• A liquidation engine (LLAMMA) that enables high LTV ratios safely
• Direct alignment with veCRV incentives

If you're building a product that needs stablecoin liquidity, lending integration, or yield-aware borrowing, you’ll find that Curve’s infrastructure is ready. As Resupply shows, the composability is real, and the upside can be shared.