Onboard sreUSD Curve Lend Market
Summary
Add the sreUSD Curve Lend market, allowing users to supply crvUSD to the sreUSD lending market on Curve Lend and borrow reUSD against their lending position. Set the market with a max 95% LTV and 15m reUSD max borrow.
sreUSD Overview
Savings reUSD (sreUSD) is Resupply’s growth-oriented ERC-4626 vault that allows long-term holders of reUSD to earn sustainable yield directly from the protocol’s weekly revenue. It features:
-
Standard ERC-4626 vault with auto-compounding reUSD yield
-
Yield sourced from total weekly protocol revenue streamed to vault depositors
-
No cooldowns, lockups, or penalties
-
No emissions or extra reward tokens
-
Native LayerZero bridging support
sreUSD accumulates value through a dynamic interest-rate mechanism that adjusts borrowing costs based on reUSD’s peg stability. When reUSD trades below peg, borrowing rates increase from 50% to 60% of underlying rates, with additional revenue directed to sreUSD holders.
sreUSD has been audited by yAudit and ChainSecurity.
sreUSD Lending Market Risks
Key risks include:
Protocol Revenue Risk: Lending yield is dependent on Resupply protocol revenue from borrowing fees and redemptions. Lower borrowing activity reduces yield generation for lenders.
Smart Contract Risk: As an ERC-4626 vault, sreUSD is subject to smart contract vulnerabilities, though it has been audited by yAudit and ChainSecurity.
Curve Lend Market Risk: Standard Curve Lend risks apply, including market-specific dynamics and dependencies.
Market Configuration
Parameters
The market should be configured with the following parameters:
-
Max LTV: 95%
-
Max Borrow: 15m reUSD
Given sreUSD’s nature as a yield-bearing wrapper of reUSD (Resupply’s native stablecoin) with no unstaking delays, these parameters provide adequate buffer while allowing efficient capital usage.
Debt Ceiling
Rationale for 15m reUSD Ceiling
-
Allows meaningful market participation while limiting systemic risk
-
Enables gradual scaling as sreUSD adoption grows
-
Aligns with conservative onboarding approach for newer lending markets
-
Allows assessment of recursive dynamics (borrowing reUSD against lending to sreUSD market)
Market Benefits
This market integration creates several positive dynamics:
-
crvUSD Peg Support: Removes crvUSD from circulation as it’s supplied to the sreUSD lending market and used as collateral on Resupply, creating upward momentum on the crvUSD peg
-
Flexible Supply Management: The reUSD max borrow limit can be quickly revisited and adjusted as the market grows, TVL increases on Resupply, and in response to crvUSD peg dynamics
-
Coordinated Growth: Provides a mechanism to scale supply in coordination with demand
Recommendation
We recommend onboarding the sreUSD Curve Lend market to Resupply with the parameters outlined above and an initial 15m reUSD debt ceiling. This provides Resupply users with the ability to earn lending yield on the sreUSD market while accessing liquidity through reUSD borrowing, creating additional utility for the protocol’s native savings product while maintaining prudent risk management.
The 15m reUSD max borrow creates a balanced initial market size that can be scaled as adoption grows. This parameter can be revisited quickly to accommodate market growth and increased TVL on Resupply.