# YIP-86: Resupply Bad Debt Repayment Loan
**URL:** https://gov.yearn.fi/t/yip-86-resupply-bad-debt-repayment-loan/14516
**Category:** Finance
**Created:** [9 July 2025 17:59 UTC](https://gov.yearn.fi/t/yip-86-resupply-bad-debt-repayment-loan/14516 "2025-07-09T17:59:20Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@dudesahn](https://gov.yearn.fi/u/dudesahn)
#### Post date: [9 July 2025 17:59 UTC](https://gov.yearn.fi/t/yip-86-resupply-bad-debt-repayment-loan/14516/1 "2025-07-09T17:59:20Z")
## Summary
- This proposal outlines a $1.13M loan agreement between Yearn and its sub-DAO, Resupply, to cover outstanding reUSD bad debt following a recent exploit.
- Yearn agrees to forego its staking revenue throughout the duration of the loan.
- The loan will be repaid in full, with 6% interest.
## Background
- Following a [$10M hack](https://mirror.xyz/0x521CB9b35514E9c8a8a929C890bf1489F63B2C84/ygJ1kh6satW9l_NDBM47V87CfaQbn2q0tWy_rtp76OI), Resupply is seeking a loan from Yearn treasury to clear remaining bad debt and return the protocol to profitability.
- Resupply has generated **$140k** in stablecoin revenue via Yearn’s permastaker since launching in March (approx. **$46k/mo** ).
- Yearn currently owns **11.58%** of the DAO via its staked RSUP.
- Of the original $10M debt, a significant amount has already been eliminated:
- $6M was covered by Resupply’s Insurance Pool
- $1.4M [donated](https://etherscan.io/tx/0x18884d0a608f6431fb4d5efa308afc1920d0f09d9691e5e22e849de61719b626/advanced) by c2tp.eth
- $818k [donated](https://etherscan.io/tx/0x1c6c24cbe0d090a953dc1df7ecae8403f6d5b317e0127048f9aacf22e2e5336e/advanced) by Convex Finance
- $643k [donated](https://etherscan.io/tx/0x7225c1e2793368234c6f133924906e9bea336dabbc363c7513f886eaa812c55c/advanced) by Resupply treasury
- The remaining **~$1.13M** of reUSD bad debt is to be offset via protocol revenue (Yearn and Convex permastakers)
- In order to fully erase the bad debt from Resupply’s markets and help restore user confidence in reUSD solvency ASAP, we are proposing Yearn front this future revenue via a loan to be repaid over time, with interest.
## Specification
### Loan Terms
- **Principal** : 1.13M crvUSD
- **Interest** : 6% APR
- **Total Repayment** : Principal + interest accrued on outstanding balance at 6% APR, 100% of repayment as crvUSD
- Repayments will be tracked via smart contract and automatically sent back to Yearn’s treasury as yvcrvUSD-2
### Repayment Structure
- Both Yearn and Convex agree to reclassify its permastaker revenue as loan repayments, and direct 100% of it as weekly payments toward loan repayments.
- Repayments will be transferred on an automated basis from Yearn and Convex permastakers
- These sources comprise **34.6% of total protocol revenue**
- Pre-hack: ~$31,446/week (~$1.64M/year)
- The aim is to have a full repayment within one year. If after 4 months, repayment is off-track, Resupply team will commit to voting in favor of adding a new protocol-level weekly revenue split as an additional source of revenue to help speed up the repayment process.
- As a part of this tracking, Resupply will provide monthly updates to Yearn DAO regarding repayment progress
**For** : Yes, provide the loan with these terms.
**Against** : No, do not provide the loan.
_Poll ([view on site](https://gov.yearn.fi/t/yip-86-resupply-bad-debt-repayment-loan/14516/1))_
---
### Author:  [@dudesahn](https://gov.yearn.fi/u/dudesahn)
#### Post date: [16 July 2025 23:21 UTC](https://gov.yearn.fi/t/yip-86-resupply-bad-debt-repayment-loan/14516/2 "2025-07-16T23:21:35Z")
Vote has been posted [here](https://snapshot.box/#/s:veyfi.eth/proposal/0xe2fc56f50b1c434ca2f80d07542b66b5ff035b22891c8d6ebb79afca62664d02) and will be live for 7 days