Insurance Capital Layer (ICL) Overview
Insurance Capital Layers (ICLs) are the core custody vaults that hold user deposits and allocate capital to the real‑world reinsurance market. Think of an ICL as the protocol’s on‑chain “treasury account” for a specific risk/return sleeve (Basis‑Plus or Alpha).
Key Characteristics
Feature
Description
Dedicated Vault
Each ICL has its own Fireblocks storage vault and on‑chain vault contract.
Token Binding
One ICL ↔ one ERC‑20 yield token (e.g. reUSD or reUSDe).
Daily Sweeps
All idle stablecoins sweep into the vault every 24 h, minimizing contract exposure.
Surplus Note Gateway
Capital can only exit the ICL after a Surplus Note is signed between Re Protocol and a licensed reinsurer.
Transparency
Draw‑downs and repayments are emitted on‑chain between the protocol and reinsurance counterparties.
Audit Trail
Off‑chain balances (Primary operating a/c or 114 Trust accounts) are reported daily by The Network Firm → Chainlink oracle.
How ICLs Fit in the Capital Stack
User Deposits → Mint yield token (reUSD or reUSDe).
ICL Vault → Holds deposits; performs daily Fireblocks sweep.
Surplus Note → When signed, allows reinsurer to draw capital (up to a pre‑agreed limit).
114 Trust → For reUSD, funds regulatory collateral; for reUSDe, funds loss reserve.
Claims & Premiums → Flow back; repayments credited to the ICL → reflected in token NAV.
Redemptions & Curve LPs → Liquidity sourced first from vault, second from Curve pools.
Current ICLs
Token
Layer Name
Risk Profile
Capital Use
reUSD
Basis‑Plus ICL
Low
Regulatory collateral in 114 Trust (senior)
reUSDe
Alpha ICL
Medium‑High
First‑loss reserve for claims (junior)
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