> For the complete documentation index, see [llms.txt](https://docs.re.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.re.xyz/products/about-reusd.md). # About reUSD ## What reUSD is reUSD is Re Protocol's senior tranche token, a yield-accruing token built for stable, low-volatility returns. It sits at the top of the capital stack and is shielded from loss by the layers beneath it. In exchange for that protection, it earns less than reUSDe. Its onchain price accrues daily as yield compounds. See the Re App's [metrics page](https://app.re.xyz/metrics) for current figures. You can find all the addresses for reUSD and reUSDe in [this page](/products/smart-contracts.md#tokens). ## How the price accrues reUSD's onchain price recalculates every day at 00:00 UTC. It accrues a blended yield based on how protocol capital is deployed: * **Offchain capital** (funding the reinsurer) earns the risk-free rate (SOFR) plus 250 bps. * **Onchain capital** (held within the protocol) earns the 7-day trailing average of the sUSDe yield rate plus 250 bps. The 250 bps spread is Re's added return on top of that floor. Onchain guardrails cap how far the published price can move: at most 50 bps per oracle update and 200 bps per 2-week window. This prevents oracle manipulation or a bad input from causing a sudden dislocation. ## The yield reUSD holders earn yield for two things. **Providing capital to licensed reinsurers.** Off-chain, that capital funds Re's partner reinsurers and supports admitted collateral held in a Regulation 114 Trust for the ceding insurers. Balances are attested by The Network Firm and published to a public Chainlink oracle. The 250 bps spread is your return for providing that capital. reUSD holders are not paid to absorb underwriting losses. That risk sits below reUSD in the stack, in reUSDe and the reinsurer's own equity. ## How reUSD is protected reUSD's principal protection is structural, not absolute. Underwriting losses are absorbed in this order, and only reach reUSD once the layers in front of it are exhausted: 1. The reinsurer's own equity, the junior layer ($77M as of June 2026). 2. reUSDe, the mezzanine tranche. 3. reUSD, last. In the November 2025 stress model, a severe 135% combined-ratio environment produced an estimated 0.03% probability of reUSD impairment. It is also a far cry from the 92% Combined Ratio Re has run across all lines of reinsurance to date (as of June 2026). Re has posted a combined ratio below 100% in every underwriting year since inception.
*reUSD is the senior tranche: it is the last to absorb losses, only after the junior layer (Re's accumulated capital and reserves) and the mezzanine tranche (reUSDe) are both exhausted.* ## How to enter and exit **Entering (minting).** See the [Minting guide](/minting-and-redemptions/minting.md). In short: connect wallet → complete KYC → deposit an accepted stablecoin → accept the terms and Token Purchase Agreement → reUSD is minted to your wallet. **Exiting (instant redemption).** While the onchain buffer holds more than 1% of total reUSD supply, you can redeem instantly in the same block. Total instant redemptions are capped at 20% of total redemption reserves per day, with a per-wallet cap of 10% of total redemption reserves (half of the daily cap). Caps are computed against the high-water mark of reserve capacity, so they do not shrink as the buffer draws down within a day. Single redemptions are additionally bounded to a minimum of 0.01 reUSD and a maximum of 1,000,000 reUSD per transaction. You receive your deposit asset at reUSD's current accrued price, less the 0.06% redemption fee. Once the daily cap is reached, further instant redemptions resume the next day. If the buffer falls below the 1% threshold, redemptions move to the quarterly queue. See the [Redemptions guide](/minting-and-redemptions/redemptions.md#reusd-instant-buffer) for the full policy. *** *For educational and informational purposes only. Nothing on this Site is investment, financial, legal, or tax advice, or an offer, solicitation, or recommendation to buy, sell, or hold any digital asset, including reUSD and reUSDe. Yields are not guaranteed and all figures are illustrative, not a promise of return; past performance is not a reliable indicator of future results. Digital assets involve significant risk, including total loss of principal — the Tokens are not bank deposits and are not insured by any government agency. The Tokens are available only to eligible non-U.S. persons in permitted jurisdictions and are subject to KYC/AML requirements. The binding terms of the applicable agreements govern and prevail over this summary. See our full* [*Disclosures*](https://re.xyz/disclosure) *for important additional information.*