Raise lending limit of crvUSD to the sreUSD Lending Market to 15m

Proposals
1

Summary

Raise the lending cap to the sreusd market from 5m to 15m.

(Take note that since sreusd market is around 80% utilization and other resupply markets may also be around 80%, only around 9.5m-10m crvusd will actually be used downstream. However the full 15m will generate the supply yield on the sreusd market.)

Motivation

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:

  1. Resupply’s Design Constraints: Resupply protocol will not add sreUSD as a collateral pair, eliminating circular dependency risks

  2. Reflexive Peg Support: crvUSD lent to sreUSD holders is primarily used to leverage sreUSD positions, which:

    • Sells crvUSD on the market (temporary downward pressure)

    • Provides reUSD with growth capacity

    • Creates demand for reUSD, which in turn buys crvUSD back from the market

    • Results in significantly lower net peg impact compared to general lending

Value Proposition

  • Mutual Growth: Supporting Resupply’s growth through sreUSD lending creates net positive value for crvUSD adoption and utility

  • Stable Revenue: Adds to Curve’s constant revenue streams in a more predictable manner than volatile asset lending markets

  • Risk-Managed Approach: Conservative 15M 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: 15,000,000 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:

  • Electi (formerly yAudit)

  • 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

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