Collateralized Debt Positions

Collateralized Debt Positions (CDP) are created by depositing crvUSD or frxUSD into a vault paired against a Curve Lend or Frax Lend lending position.

Collateral Types

All collateral backing for reUSD are stablecoins deposited on Curve Lend or Frax Lend lending positions. All collateral will earn lending fees and any extra rewards, such as CRV. The system will assume that the underlying assests, frxUSD and crvUSD, have a price of one dollar.

crvUSD

crvUSD deposited into a CDP on Resupply will be supplied to a lending position of the user's choice on Curve Lend deposited on Convex Finance. Each lending position will earn the underlying lending fees as well as boosted CRV rewards and any extra rewards.

frxUSD

frxUSD deposited into a CDP on Resupply will be supplied to a lending position of the user's choice on Frax Lend. Each lending position will earn the underlying lending fees.

Minting reUSD

Minting reUSD against each collateral type will have a maximum Loan-To-Value (LTV) set per lending position as set by governance. In addition, governance will also define a possible maximum borrow limit per lending position as deemed necessary.

The minimum amount of reUSD that can be minted against a CDP is 1000 reUSD.

A mint fee for minting reUSD is possible but is currently set to zero. This can be turned on later if deemed necessary.

Borrow Fee Rate

The borrow rate for reUSD will be set at half the underlying lending fee rate, half the "risk-free rate," or two percent, whichever is greater. sfrxUSD's current APY will be used as the oracle to define the "risk-free rate."