resupply-insurance

Resupply's insurance pool mitigates bad debt by utilizing deposited reUSD capital to absorb liquidation shortfalls. When liquidations result in bad debt, the pool's coverage logic automatically steps in to settle the deficit, protecting the protocol's overall solvency.

To mint reIP shares, you deposit reUSD into the Resupply insurance pool. Your deposit directly mints proportional reIP shares, granting you participation in the insurance coverage mechanism and exposing you to reward interactions and potential debt events.

The exit delay for withdrawing funds from the reIP pool is 7 days. Withdrawals use a two-step process where you must first initiate the request and then wait through the 7-day exit delay to ensure capital availability before completing the withdrawal.

You need an ERC4626 insurance pool when a lending protocol requires a dedicated safety buffer to absorb liquidation failures. Resupply's reIP mechanism serves this purpose by pooling deposited assets to systematically cover unresolved bad debt.

Yes, reIP share value is directly impacted during bad debt events. When the insurance pool covers liquidation deficits, the pool's total capital decreases, which proportionally reduces the underlying value of remaining reIP shares held by depositors.