reUSDe FAQ
Last updated
Last updated
Welcome to the reUSDe FAQ page. Here you’ll find answers to common questions about our partnership with Ethena, the staking process, yield generation, risks, and more. This guide is designed to help USDe holders quickly understand how reUSDe works and how you can benefit from onchain reinsurance yield.
Answer: Re has partnered with Ethena to empower USDe holders by allowing them to stake their tokens and earn yield through onchain reinsurance. This collaboration leverages Ethena’s yield-bearing asset, sUSDe, to provide consistent returns from both idle capital (by retaining yield in sUSDe) and from actively deployed funds in reinsurance contracts. In essence, reUSDe enables USDe holders to participate in a real-world yield generation mechanism that is uncorrelated with traditional DeFi strategies.
Answer: Staking your USDe tokens with Re is simple and user-friendly. Follow these steps:
Connect Your Wallet:
Visit and connect a compatible wallet (e.g., MetaMask).
Ensure your wallet is funded with USDe or sUSDe.
Initiate Staking:
Navigate to the staking section and select USDe as your chosen token.
Enter the amount you wish to stake.
Accept Terms and Fee Schedule:
Review the fee schedule and token purchase agreement, then confirm your acceptance.
Deposit & Escrow:
Your USDe tokens will be tokenized and placed in an escrow contract pending KYC.
Complete KYC:
Follow the on-screen prompts to complete your KYC process. Once approved, your reUSDe tokens will be minted and sent to your wallet.
View Rewards:
Use the platform dashboard to monitor your staked balance, accrued yield, and other performance metrics.
Screenshots and detailed visual guides are available on the platform’s documentation page for your convenience.
Answer: The yield on reUSDe is generated from two primary sources:
Reinsurance Premiums: Returns generated by deploying capital into diversified reinsurance risk pools.
Idle Asset Optimization: USDe funds that are not actively deployed are maintained in sUSDe, capturing liquid staking rewards and other yield opportunities.
APY can vary based on market conditions and the performance of reinsurance contracts. Typically, returns are targeted in the mid-teens to mid-twenties percentage range. Detailed yield projections, along with historical performance data, are updated on the protocol’s dashboard.
Answer: Yes, there is a minimum holding period. Participants must hold reUSDe for at least 40 days before they become eligible to submit a redemption request. This commitment period helps ensure the stability of the Insurance Capital Layer (ICL) and the smooth operation of yield generation.
Answer: As with any financial protocol, there are inherent risks involved:
Smart Contract Risk: Potential vulnerabilities in the code, though our contracts are rigorously audited.
Underwriting Risk: Risk associated with reinsurance contracts and the performance of deployed capital.
Protocol-Specific Risks: Market volatility and unforeseen changes in yield strategies can affect returns.
We advise users to review our detailed risk disclosure on the documentation page for a comprehensive understanding of all associated risks.
Answer: When you stake USDe with Re, your tokens are converted into reUSDe and placed into the dedicated Insurance Capital Layer (ICL) for Ethena assets. Within the ICL:
Active Funds: A portion is allocated to reinsurance risk pools managed by vetted Cell Managers.
Idle Funds: Unallocated assets remain in sUSDe to capture yield from Ethena’s liquid staking rewards.
Answer: Yield generation for reUSDe comes from:
Onchain Reinsurance: Capital is deployed into reinsurance contracts, generating returns from premiums and other reinsurance revenue.
Optimized Yield on Idle Assets: Idle assets are dynamically managed—swapped into yield-bearing instruments (for reUSD) or retained in sUSDe (for reUSDe)—ensuring that every deposited token is working to maximize returns.
The protocol’s daily projected NAV updates reflect both realized and anticipated earnings, providing transparency on yield generation.
Answer: Yes. The Re Protocol will soon provide a dashboard where you can monitor:
Total Value Locked (TVL)
Accrued yields
Payout history
Real-time NAV updates
Detailed analytics on both deployed and idle asset performance
This transparency enables you to track the performance of your staked USDe and reUSDe tokens easily.
Answer: Fees associated with staking include:
Management Fees: A small percentage may be deducted for protocol maintenance and operations.
Performance Fees: A fee may be applied on the yield generated, depending on the reinsurance contract performance.
Gas Fees: Standard network fees for blockchain transactions.
All fees are clearly outlined in the token purchase agreement during the staking process.
Answer: Re stands apart by providing:
Uncorrelated Returns: Yield generation via onchain reinsurance, which is independent of typical DeFi market dynamics.
Real-World Underwriting: Exposure to reinsurance premiums, which traditionally have low correlation with crypto market volatility.
Dynamic Yield Optimization: Intelligent management of idle assets to capture the best available yields.
Transparency: Daily NAV updates and robust reporting ensure complete transparency in performance.
Answer: Yes, security is a top priority. Re’s smart contracts undergo rigorous audits by reputable firms. Additionally, the protocol employs best practices in risk management and collateralization, and the Insurance Capital Layer (ICL) ensures that all participant funds are fully collateralized. For further details, please refer to our audit reports on the documentation page.
Answer: Currently, the focus is on USDe (and sUSDe) as the primary assets for reUSDe. However, as the protocol evolves, additional ICLs may be introduced for other supported tokens. USDe is central to our strategy, but future expansions will allow broader capital sourcing opportunities.
Answer: The USDe staking program is set to launch soon. Detailed timelines, launch dates, and early participation incentives will be announced on our official channels. Stay tuned to our website and community forums for the latest updates.