What is reUSD?
Last updated
Last updated
reUSD is the proprietary token of the Re Protocol, representing your ownership and claim on the returns generated within the. By bridging traditional reinsurance with decentralized finance (DeFi), reUSD provides participants with transparent, auditable access to a stable yet innovative financial sector.
Tokenized Ownership: Each reUSD token signifies a proportional claim on the assets and returns within the .
Dynamic Yield Generation:
Active Capital: Funds deployed into reinsurance risk contracts generate targeted returns, contributing to the token’s appreciation.
Optimized Yield on Idle Assets: Unallocated funds are automatically swapped into the best available yield options in the market, ensuring maximum efficiency.
Daily NAV Updates: The protocol recalculates the projected Net Asset Value (NAV) for reUSD every day at UTC 0. This update reflects both realized earnings and anticipated returns from ongoing reinsurance contracts.
Seamless DeFi Integration: As an ERC-20 token, reUSD can be easily used across multiple DeFi platforms for lending, borrowing, staking, and other applications.
The value of reUSD is derived from the NAV of the ICL, which is updated daily and calculated on a quarterly basis. Key components include:
Risk Pool Returns: Profits from funds deployed into reinsurance risk contracts are factored into the NAV.
Yield from Unallocated Assets: Idle funds are actively swapped into the best yield-generating instruments available, dynamically boosting the token’s value.
Collateralized Assets: The total value of fully collateralized assets held within the protocol also contributes to the overall NAV.
Balances and NAV calculations are transparently published, enabling participants to manually verify holdings via the following blockchain addresses:
Ethereum:
Avalanche:
Arbitrum:
Quarterly Redemption Windows: reUSD holders can redeem tokens during designated quarterly redemption events. Redemptions occur only when sufficient returns have been realized, ensuring financial stability and fairness.
Early Redemptions Coming Soon: In the coming weeks, the protocol is partnering with decentralized exchanges—starting with Curve—to offer early redemption options for added flexibility.
Redemption Mechanics:
NAV Calculation: The protocol determines available capital based on the quarterly NAV.
Redemption Queue: Requests are processed on a first-come, first-served basis. Any unfulfilled requests roll over to the next period.
Yield Accrual: Yield generation begins once funds are deployed into reinsurance risk contracts or dynamically swapped to capture the best available market yield.
Long-Term Growth: Returns from reinsurance contracts typically start to be realized approximately 18 months after capital deployment. Over time, this generates stable, predictable growth in the value of reUSD.