Summary
Create a new factory layer that enables minting directly into the sreUSD lending market on Curve Lend, with an initial 5M crvUSD borrow cap.
Motivation
Novel Minting Mechanism
This proposal introduces a new approach to crvUSD minting that utilizes lending pairs rather than traditional collateralized minting pairs. Lending markets provide alternative monetary policy tools that can be strategically valuable for specific use cases.
Strategic Rationale for sreUSD
While we generally maintain that most minted crvUSD should utilize peg-keeping mechanisms to enforce repayment, sreUSD presents a unique exception due to its reflexive economic relationship with crvUSD:
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Resupply’s Design Constraints: Resupply protocol will not add sreUSD as a collateral pair, eliminating circular dependency risks
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Reflexive Peg Support: crvUSD lent to sreUSD holders is primarily used to leverage sreUSD positions, which:
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Sells crvUSD on the market (temporary downward pressure)
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Provides reUSD with growth capacity
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Creates demand for reUSD, which in turn buys crvUSD back from the market
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Results in significantly lower net peg impact compared to general lending
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Value Proposition
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Mutual Growth: Supporting Resupply’s growth through sreUSD lending creates net positive value for crvUSD adoption and utility
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Stable Revenue: Adds to Curve’s constant revenue streams in a more predictable manner than volatile asset lending markets
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Risk-Managed Approach: Conservative 5M borrow cap allows for monitoring and adjustment; can be increased via future proposals if performance warrants
Specification
Target Market: sreUSD on Curve Lend
Initial Lending Amount: 5,000,000 crvUSD
GitHub Factory: https://github.com/resupplyfi/resupply/blob/main/src/dao/CurveLendMinterFactory.sol
GitHub Implementation: https://github.com/resupplyfi/resupply/blob/main/src/dao/CurveLendOperator.sol
Deployed Factory: https://etherscan.io/address/0xd99391df68cdb38a89828a6d51f3976e3e76afff#code
Deployed Implementation: https://etherscan.io/address/0x60d9d93a4565d9cf79c79742c26e417ac1386eb2#code
Security
The implementation has undergone two independent security audits:
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Electi (formerly yAudit)
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ChainSecurity
The contract design is straightforward and follows established patterns for Curve lending integrations.
Audits can be found at: https://github.com/resupplyfi/resupply/tree/main/audits
Next Steps
If approved, this minter can be activated with the specified parameters. Future proposals may adjust the borrow cap based on market performance and demand.