Introduction to the Re Protocol

The Re Protocol is a groundbreaking innovation that bridges the gap between traditional insurance markets and decentralized finance (DeFi). Built on blockchain technology, Re Protocol introduces an unprecedented level of transparency, efficiency, and accessibility to the global reinsurance market. A multi-trillion-dollar industry historically characterized by opacity and reliance on intermediaries.

At its core, Re Protocol facilitates direct, efficient capital allocation to reinsurance contracts. This is achieved through a network of interconnected smart contracts and an architecture designed for auditable, secure operations. Participants in the protocol gain exposure to the returns of the reinsurance sector without the traditional barriers of entry, while simultaneously benefiting from the transparency and automation enabled by blockchain.

Deposited assets sweep daily to a Fireblocks vault. When the licensed reinsurer draws on a Surplus Note, collateral moves on‑chain to the contracting reinsurance counterparty.

All assets moved into a reinsurance contract or off ramped into a regulated 114 trust bank account will be reported on chain via third party verification and reported on chainlink.

When sufficient capital is raised between the reUSD and reUSDe ICLs, the protocol will sign binding surplus note agreements with an approved reinsurance entity.

reUSD will be available to the reinsurance company to provide regulatory backing while reUSDe will be used to pay any sort of losses and provide a back stop to prevent any risk to reUSD.

As reinsurance contracts mature, the actuary reinsurance team will determine available funds to be released. As funds are released and paid back to the Re Protocol, liquidity and redemptions will be supported for reUSD and underwriting margin will be paid in profits back to reUSDe supporting its increase in price.

Key Features:

• Tokenized Access to Reinsurance: By issuing reUSD and reUSDe tokens, Re Protocol provides a simple yet powerful way to participate in reinsurance-backed contracts. These tokens reflect the value of the underlying insurance capital and its returns.

• Two Ways to Participate

  • Insurance Alpha (reUSDe) – capture the 15-23 % underwriting spread from real U.S. insurance programs.

  • Basis-Plus (reUSD) – park capital in a low-volatility T-bill + spread vault (≈ 6-9+ % net).

    Participants in either track receive the same economic exposure, letting you choose your preferred risk/return profile without differential incentives.

• Strategic Partnerships: Re Protocol begins its journey in partnership with CoverRe.com, an established Cayman-based reinsurer. This ensures stability and operational expertise during the protocol’s initial phase.

• Gradual Decentralization: While initially governed by a centralized council of experts, Re Protocol is designed to transition into a decentralized autonomous organization (DAO) to empower community-driven decision-making.

By combining the strengths of blockchain technology with the stability of the reinsurance market, Re Protocol is positioned to redefine the way capital is deployed and managed in the insurance industry.