> 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 for current figures : . ### **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: * **Off-chain capital** (funding the reinsurer) earns the risk-free rate (SOFR) plus 250 bps. * **On-chain capital** (held within the protocol) earns the 7-day trailing average of the sUSDe basis-trade rate plus 250 bps. The 250 bps spread is Re's added return on top of that floor. A daily move cap limits how far the published price can move in a single day before a new price is accepted, which 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. Based on Re's stress modeling (November 2025 LP Memo), the probability of reUSD capital impairment at a 135% combined ratio, a severe stress scenario, is approximately 0.03%. 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. 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 and in full in the same block, subject to two limits: no single redemption can exceed 10% of the available buffer, and total instant redemptions are capped at 20% of the available redemption capacity per day. You receive your deposit asset at reUSD's current accrued price, less a 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. *** *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.*