# Stability Mechanics Resupply uses a redemption model for maintaining the stability of the reUSD stablecoin. The redemption model only maintains a price floor of $1 minus a small redemption fee, that is configurable by the DAO. If the reUSD depeg were to move upwards, this would be beneficial as it would encourage more borrowing. A 1% fee will be used for redemptions, allocating 0.8% to the borrower and the remaining 0.2% to the protocol.\ \ **Note:** If crvUSD depegs upward and is worth $1.05 instead of $1.00, the redemption fee increases by 5%. The same applies to frxUSD—if it continues to depeg upward, the redemption fee rises by the same percentage as the depeg amount. Unlike other redemption models Resupply redemption model is communal, affecting not just a single user but the entire lending pool. Redeemer may choose which pools will be redeemed against, but a weighted discount will be used to encourage which pools to redeem against. The longer a pool goes without being redeemed against the greater the discount on said pool. ## Redemption Example Let's assume in this example that 100 reUSD are required to restore the peg and the redemption fee is 1%. 1. Redeemer acquires 100 reUSD from the market and triggers a redemption. 2. Borrowers have $99 worth of collateral removed. 3. The redeemer receives $99 worth of collateral. 4. The borrower's debt has been reduced by 99.8 reUSD. Effectively reducing it by an extra 0.8 reUSD. 5. The resupply protocol receives a fee of 0.2 reUSD. --- # 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/stability-mechanics.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.