# Savings reUSD Savings reUSD (**sreUSD**) is a growth-oriented vault that allows long-term holders of reUSD to earn sustainable yield directly from the protocol’s weekly revenue. It is implemented as a standard ERC-4626 vault with auto-compounding mechanics, which means that depositors continuously accrue yield without the need for lockups, cooldown periods, penalty fees, or separate reward tokens. Yield is sourced from total protocol revenue and is distributed directly to stakers. The introduction of sreUSD is designed to strengthen the stability of reUSD’s peg while creating new opportunities for integrations within the broader DeFi ecosystem. A dynamic interest-rate mechanism adjusts borrowing costs based on how closely reUSD tracks its peg. When the peg is stable, borrowing rates are lower, reducing fees to the base level. When reUSD trades below peg, borrowing rates increase up to a defined threshold. This additional revenue collected during periods of peg stress is funneled directly into sreUSD. ## Key Features * Standard ERC-4626 vault with auto-compounding reUSD yield * Yield is sourced from total weekly protocol revenue and streamed to vault depositors * No cooldowns, lockups, or penalties * No emissions or extra reward tokens * Native LayerZero bridging support ## Peg-Based Dynamic Interest Rates A new interest rate calculator has been deployed across all reUSD pairs. It includes `priceWeight` multiplier that adjusts borrowing rates based on how closely reUSD tracks its peg: * Interest will continue to be calculated based on underlying lending interest, sfrxUSD interest, and a constant 2% * `priceWeight` is used to determine how much of the underlying interest or sfrxusd interest should be used as fees. Previously, this was a flat 50%. Going forward it will be a range between 50% (on-peg) and 60% (off-peg). * As the reUSD peg approaches 1, interest rates decrease back to the base 50% of underlying/sfrxusd interest rates. * As the price falls below peg, rates increase to a max of 60% of underlying/sfrxusd interest rates. * The rate adjustment is bounded by configurable min/max thresholds (ie. How much of the underlying/sfrxusd rates should be charged as fees) This mechanism increases fees during periods of peg instability. The additional revenue it creates is distributed as yield to sreUSD. #### Example: At the conclusion of epoch X: * the time-weighted price of reUSD was $0.992 * sfrxUSD yield was 10% and was higher than all underlying lending rates * 80k reUSD was collected via interest * 20k reUSD collected via redemptions This means the effective interest rate during this period was 58% of sfrxUSD, or 5.8% (5% base + 0.8% off-peg). This allows us to compute the following two components: 1. base interest fees (5%): \~68.96k 2. off-peg fees (0.8%): \~11.03k Therefore 11.03k reUSD is immediately allocated to sreUSD and the remaining 68.96k interest fees + 20k redemption fees are pooled and split according to the ratios above. In this example, the final distributions would be as follows | Destination | Amount | | -------------- | -------------------------------------- | | Staked RSUP | 62.27k | | sreUSD | 24.37k (13.34k + 11.03k) | | Insurance Pool | 8.89k | | Treasury | 4.44k | | **Total** | \~100k (80k interest + 20k redemption) | ## --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.resupply.finance/resupply-protocol/savings-reusd.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.