Redemption Process and Liquidity

1. Liquidity Paths at a Glance

Token

Primary Path

Backup Path

DEX Support

reUSD

Instant redemptions out of the protocol buffer until that buffer is exhausted.

Quarterly redemption window (every 3 months). Pro‑rata fulfilment until liquidity is gone.

Curve and other partner pools seeded by the protocol plus external LPs.

reUSDe

Quarterly redemption window only. Requests filled pro‑rata with capital not reserved for reinsurance plus any funds actuarially released that quarter.

-

Curve pool (for trading); no instant protocol redemption buffer.

Key Difference → reUSD can be cashed out on demand until its instant‑liquidity buffer hits zero, after which it behaves like reUSDe (quarterly queue). reUSDe is always in the quarterly queue.

2. How Instant reUSD Redemptions Work

  1. Buffer Sizing – Actuaries size an on‑chain buffer

  2. First‑Come, First‑Served – Users can redeem and receive swapped assets in the same block while funds remain available.

  3. Exhaustion Trigger – Once the buffer < 1 % of supply, the contract reverts to "window‑only" mode until more capital returns.

  4. Auto‑Replenish – When surplus notes repay or the quarterly window closes with excess cash, the buffer refills.

Capital Sources for reUSDe Windows

  1. Idle on‑chain balance earning sUSDe yield.

  2. Capital not required for active treaties (per Minimum Required Asset Level checks).

  3. Actuarially released surplus from maturing treaties.

4. DEX & External Liquidity Pools

  • reUSD – Deepest support in the Curve reUSD/USDC pool;under discussion. External LPs encourage extra depth.

  • reUSDe – Curve reUSDe/sUSDe pool for secondary trading; no protocol‑guaranteed instant exit.

6. Safeguards & Transparency

  • Public Dashboard (In development ): Live buffer size, window dates, payout ratios.

  • Chainlink Proof‑of‑Reserve : Publishes buffer wallet balances and trust‑bank statements.

  • Governance Emergency Pause : Can freeze new redemptions if systemic or security risk emerges.

  • KYC Enforcement : Revoked KYC => request cancelled, tokens returned.

7. Quick FAQ

Q

A

I hold reUSD—do I have to wait quarterly?

Only if the instant buffer is empty; otherwise you can redeem immediately.

How is the payout ratio set?

(available capital ÷ total requests)

Is Curve liquidity guaranteed?

No. Pool depth depends on market makers and may fluctuate.

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