FAQs

1. What is the Re Protocol?

The Re Protocol is a decentralized platform that leverages reinsurance contracts to generate yield on staked capital. It allows users to deposit stablecoins—such as USDC, DAI, USDe, and sUSDe—into Risk Pools. These funds are then deployed into a diversified portfolio of reinsurance contracts managed by qualified Cell Managers. In return, users earn yield that is uncorrelated with typical market volatility.

2. How Does the Protocol Work?

Staking and Capital Deployment: Users deposit approved stablecoins to mint protocol tokens (reUSD or reUSDe) that represent their share in the Insurance Capital Layer (ICL).
Yield Generation: The deposited funds are allocated to Risk Pools, where they are invested in diversified reinsurance contracts to generate yield.
Dual Yield Benefit (for reUSDe): For Ethena’s USDe and sUSDe users, any idle assets continue to earn sUSDe staking yield, while deployed funds generate reinsurance returns.
Risk Management: Collateral is maintained in Trust Accounts to cover claims in case a Risk Pool underperforms, helping to protect token holders.

3. What Tokens Can I Stake?

The protocol accepts a select group of stablecoins, including:

Conventional Stablecoins: USDC, DAI etc
Ethena Tokens: USDe and sUSDe

For the most up-to-date list of admitted tokens, please refer to the staking section on our .

4. What is the Difference Between reUSD and reUSDe?

Both reUSD and reUSDe provide exposure to reinsurance yield, yet they serve different communities and employ distinct strategies for managing unallocated assets:

reUSD:
- Accepted Collateral: Primarily accepts traditional stablecoins (e.g., USDC, DAI).
- Yield Strategy on Unallocated Assets: Unallocated assets are automatically swapped into the best yield available in the market. This dynamic strategy maximizes returns on all idle capital.
- Target Audience: General stablecoin holders looking for optimized yield opportunities through reinsurance investments.
reUSDe:
- Accepted Collateral: Exclusively accepts Ethena’s synthetic dollars—USDe and sUSDe.
- Yield Strategy on Unallocated Assets: Unallocated assets are retained in sUSDe to consistently match the yield available through Ethena, ensuring users continue to benefit from Ethena’s staking rewards.
- Target Audience: Ethena community members who want to leverage their USDe or sUSDe holdings for reinsurance yield while preserving Ethena-specific benefits.

5. What Should I Do If My KYC Fails?

If your Know Your Customer (KYC) verification fails:

Your funds remain securely held in escrow.
Please contact our support team at [email protected] with your details.
Our team will assist you in resolving the issue or process a refund. Typically, you can expect a response within 2–3 business days.

6. Who Can Participate in the Protocol?

Participation is open to non-U.S. individuals and entities that successfully complete our KYC/AML verification processes. However, the following jurisdictions are prohibited:

United States, Iran, North Korea, Syria, South Sudan, Sudan, Cuba, Russia, Belarus, Afghanistan, Burma (Myanmar), Central African Republic, Democratic Republic of the Congo, Ethiopia, Iraq, Lebanon, Libya, Mali, Nicaragua, Somalia, Yemen, and any other jurisdiction where participation would violate applicable laws or regulations.

7. How Are Risk Pools and Cell Managers Structured?

Risk Pools: These are the investment vehicles into which staked capital is allocated. Funds are deployed into a diversified portfolio of reinsurance contracts designed to generate yield.
Cell Managers:
- Selection Process: Cell Managers are rigorously vetted and approved by the Resilience Foundation.
- Role: They oversee and manage the Risk Pools, ensuring that the investments are sound and that risks are effectively managed.

8. What Happens If a Risk Pool Underperforms?

If a Risk Pool underperforms, collateral held in Trust Accounts is used to cover claims. This risk management mechanism is designed to minimize potential losses for reUSD holders and maintain the overall financial stability of the protocol.

9. Are Catastrophic Events Covered?

No, the protocol does not underwrite catastrophic risk contracts—such as those related to major fires or hurricanes. Instead, it focuses on low-volatility, short-duration program business to maintain stable and consistent returns.

10. When and How Can I Redeem My Tokens?

Quarterly Redemptions: Redemption events for reUSD and reUSDe are currently evaluated on a quarterly basis. Redemptions are only offered when sufficient returns from Risk Pools have been realized, ensuring the protocol’s long-term financial stability.
Early Redemptions Coming Soon: To provide users with faster access to their funds, the protocol is partnering with decentralized exchanges (DEXs) to enable early redemptions.
- Initial Partnership with Curve: Our first collaboration is with Curve, a leading DEX known for its stablecoin liquidity. This partnership will allow users to redeem their tokens earlier than the standard quarterly schedule.
Redemption Process: When early redemptions are enabled via Curve, you’ll be able to exchange your protocol tokens for the underlying stablecoins directly on the DEX. Further details and instructions will be provided as the feature is rolled out in the coming weeks.

11. How Soon Will I Start Earning Yield?

Yield Accrual: Yield generation begins once your funds are deployed into Risk Pools or other yield-bearing assets.
Timeline: For reinsurance investments, returns typically start being distributed around 18 months after deployment into a Risk Pool. For reUSDe, idle capital continues to earn sUSDe staking yield immediately.

12. I Don’t See My Tokens in My Wallet – What Should I Do?

If your reUSD or reUSDe tokens are not visible in your wallet, you may need to add them manually using the token contract addresses:

reUSD Token Addresses:

reUSDe Token Address (Ethereum):

Steps to Add a Custom Token:

Open your wallet application and navigate to the “Add Token” option.
Enter the relevant token contract address.
Ensure you’re on the correct network (Ethereum, Avalanche, or Arbitrum).
The wallet should auto-populate the token symbol and decimals; if not, enter them manually.

13. How Does Price Accrual Work?

Daily Price Updates: Every day at UTC 0, the protocol recalculates the projected Net Asset Value (NAV) for all Insurance Capital Layer tokens (reUSD and reUSDe). This daily update reflects both realized earnings and projected returns.
Projected NAV Explained: Periodically, the protocol updates the projected NAV to account for anticipated earnings from assets deployed in reinsurance risk contracts. This projection estimates the future price of the token based on expected yield.
Impact on Unallocated Assets:
- For reUSD: Unallocated assets are swapped into the best yield available in the market. The projected NAV for reUSD factors in these dynamic yield opportunities.
- For reUSDe: Unallocated assets remain in sUSDe, ensuring that the projected NAV consistently reflects the yield available through Ethena.
Daily Price Impact: When assets are moved into reinsurance risk contracts, the potential earnings from these contracts are included in the projected NAV calculation. This means the daily price update reflects both current earnings and anticipated future returns.
Transparency: Users can view these updates on the protocol’s dashboard to monitor how projected earnings impact the token price over time.

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Last updated 1 month ago