What is reUSDe ?
reUSDe ( Insurance Alpha )
TL;DR reUSDe is the Re Protocol’s performance token: it absorbs first‑loss risk across the reinsurance portfolio in exchange for a share of underwriting profits that historically translate to 16 – 25 % net annual returns. Price compounds daily off a quarterly‑refreshed Target Net Asset Value (tNAV), and redemptions are processed quarterly on a pro‑rata basis subject to actuarial release of surplus capital.
1. Purpose & Capital Stack Role
Stop‑Gap Capital : Sits junior to reUSD and senior surplus notes, covering any claim shortfalls before senior layers are touched.
Profit Participation : After claims, underwriting fees, and operational overhead, the remaining surplus is credited to reUSDe holders.
Regulatory Friendly : Deployed via the same §114 Trust structure, reUSDe offers reinsurers contingent capital without diluting shareholder equity.
Capital Waterfall
Claims Paid
Underwriting/Ops Fees
reUSD Accrual (risk‑free / basis yield)
reUSDe Surplus Share (16 – 25 % target RoR)
Protocol Treasury (excess, if any)
2. Earnings & Daily Pricing
Metric
Data Source
Update Frequency
Target NAV (tNAV)
Quarterly actuarial report & audited P&L
Quarterly via public API / Chainlink
Daily Price
Calculated / Updated daily
Daily @ 00:00 UTC
While the price scales daily for smoother UX, actual surplus realisation occurs when quarterly accounts close.
3. Deployment & Loss Absorption Mechanics
Mint — Users deposit admitted assets (or reUSD) into the reUSDe contract.
Off‑Ramp — Funds are transferred to the ICL and onward to the §114 Trust as stop‑gap surplus capital.
Loss Absorption — If portfolio losses exceed the senior buffer, trust assets backstop claims, reducing tNAV accordingly.
Profit Crediting — Profits net of fees flow back, increasing tNAV and thus the token’s daily price path.
Idle funds pending deployment stay on‑chain, automatically earning the Ethena sUSDe basis‑trade yield until called.
4. Redemption Framework
Stage
Window
Fulfilment Basis
Settlement Timeline
Request
First 72 h of each fiscal quarter
Queue captures amount & wallet
Instant confirmation
Actuarial Gate
End‑of‑quarter reserve analysis
Determines Available Surplus
≤ 10 business days
Pro‑Rata Payout
If requests ≤ surplus: 100 % fill. If > surplus: proportional fill
Assets wired from trust → on‑chain → burn & pay
Up to 5 business days post‑gate
Rollover
Unfilled balance auto‑rolls to next quarter
Retains seniority in queue
N/A
Note: No secondary market maker pool is promised. OTC trades are unrestricted but not protocol‑guaranteed.
5. Idle‑Balance Yield (Ethena Path)
Any reUSDe liquidity awaiting deployment accrues the sUSDe rate (Ethena’s staked USDe), captured and reflected in tNAV. This ensures holders are compensated even when capital utilisation is temporarily low.
6. Transparency & Risk Controls
Chainlink Oracles — Publish daily price, quarterly tNAV, surplus buffer, and queue utilisation.
Independent Actuary — Validates claim reserves and surplus release schedule.
Custodian Reporting — Trust bank provides daily statements; hashed & posted on‑chain.
Audit & Assurance — Smart‑contract audits and annual SOC‑type reports on off‑chain entities.
7. Comparative Advantages
reUSDe
Tokenised Cat Bonds
DeFi Senior‑Tranche Vaults
Principal often at risk but profit share ≥ 16 %
High coupon but binary loss events
Lower APY, convex loss via protocol hacks
Daily compounding price
Semi‑annual coupons
Constant share price, yield streamed
Quarterly liquidity with transparent gate
3‑5 yr lockup
Variable liquidity, no RL trust
8. Risks & Disclaimers
Loss Risk — reUSDe absorbs portfolio deficits first; extreme claim seasons may impair tNAV.
Liquidity Risk — Redemption gated quarterly; distress scenarios may extend settlement.
Regulatory — Not offered to U.S. persons; local securities laws may apply.
This document is informational and not investment advice. Parameters (fees, redemption cadence, Ethena integration) may evolve—always consult the latest docs and on‑chain feeds.
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