Introduction to the Re Protocol
Re Protocol bridges decentralized finance and the global reinsurance market. Built on blockchain technology, it brings transparency, efficiency, and accessibility to a multi-trillion-dollar industry that has historically been opaque and intermediary-heavy.
How It Works
Re Protocol facilitates direct capital allocation to reinsurance contracts through a network of smart contracts and a layered capital architecture. Participants deposit stablecoins, receive yield-bearing tokens, and earn returns derived from both on-chain DeFi strategies and off-chain reinsurance deployments.
Deposited assets are swept daily to a Fireblocks custody vault. When a licensed reinsurer draws on a Surplus Note, capital moves to the reinsurance counterparty. Off-chain assets (whether in a reinsurance contract or a regulated §114 trust account) are reported on-chain daily via third-party verification through Chainlink.
As reinsurance contracts mature and the actuarial team releases capital, liquidity flows back to the protocol — supporting redemptions for reUSD and contributing to yield accrual for both tokens.
Two Ways to Participate
Re Protocol offers two yield tokens, each representing a different position in the capital stack:
Basis-Plus (reUSD) — the senior tranche. Earns a blended yield (SOFR + sUSDe weighted average) plus a 250 bps spread. More liquid, with instant redemptions when capacity is available.
Insurance Alpha (reUSDe) — the junior tranche. Earns the same blended yield plus an 850 bps spread, in exchange for absorbing losses before the senior layer. Redeemable quarterly.
Both tracks provide exposure to reinsurance-backed returns. Choose based on your preferred risk/return profile.
Layered Capital Protection
The protocol's capital stack provides multiple layers of protection:
Reinsurance company equity sits junior to all protocol capital — the reinsurance partner's own funds absorb losses first.
reUSDe acts as the next buffer, absorbing losses after the reinsurer's equity.
reUSD is the most senior layer, protected by both layers below it.
Key Features
Tokenized access to reinsurance: reUSD and reUSDe tokens give participants simple, liquid exposure to reinsurance-backed returns.
Transparent by design: Every dollar of collateral and every premium payment is visible on-chain or attested daily via Chainlink.
Strategic partnership: Re Protocol operates in partnership with CoverRe.com, a Cayman-based licensed reinsurer, ensuring regulatory compliance and operational expertise.
On-chain composability: Use tokens as collateral in Curve, Pendle, Morpho, and other DeFi venues.
By combining blockchain transparency with the stability of the reinsurance market, Re Protocol opens a once-institutional asset class to a broader set of participants.
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