reUSD
How reUSD Works
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Overview
reUSD is designed to be boring, predictable, and composable
Minimal volatility, yield accrues daily.
Extremely unlikely reUSD is ever used to pay insurance losses.
Yield is sourced from reinsurance premiums, reference rates, and a protocol spread.
Redeem for underlying assets when redemption is available to you.
Yield Structure
Automated daily price accretion from deployment-weighted returns + 250 bps
Risk-free leg (deployed capital): current risk-free rate + 250 bps
Basis leg (undeployed capital): trailing 7-day avg sUSDe basis trade + 250 bps
Protocol calculates the current deployment mix and converts the blended rate into daily price appreciation with no rebasing.
Capital Tranching
reUSD is designed to be risk-remote from insurance losses.
Equity and retained reserves absorb losses first acting as junior tranche capital.
Mezzanine tranche capital absorbs losses next.
Senior tranche capital is last. Only reached after the layers above are fully exhausted.
Equity and retained reserves absorb losses first acting as junior tranche capital.
Mezzanine tranche capital absorbs losses next.
Senior tranche capital is last. Only reached after the layers above are fully exhausted.
In the normal state, premiums plus buffers pay claims and expenses, so the capital stack remains untouched. For reUSD to be impacted, losses would need to overwhelm premiums and buffers and then fully exhaust every lower layer first. That is a rare, catastrophic tail event.
reUSD sits at the top of the stack and is designed to become more remote over time as reserves grow.
Capital Deployment
How deposits back regulated insurance programs and earn yield.
Deposit
Users deposit stablecoins and receive reUSD deposit tokens.
Capital allocation
Capital is split between on-chain liquidity and off-chain reserves based on program needs.
Deployment into reinsurance
Premiums and program economics generate the yield.
Yield and redemption
Yield accrues to reUSD through price accretion. Redemptions are funded from available liquidity and reserves.
Deposit
Users deposit stablecoins and receive reUSD deposit tokens.
Capital allocation
Capital is split between on-chain liquidity and off-chain reserves based on program needs.
Deployment into reinsurance
Premiums and program economics generate the yield.
Yield and redemption
Yield accrues to reUSD through price accretion. Redemptions are funded from available liquidity and reserves.
Capital moves off-chain because real insurance is regulated and claims are paid in the real world. To track how much is on-chain vs off-chain, what is deployed, and which programs are being backed, see the Capital Strategy Dashboard.
It includes current balances, deployment status, and supporting third-party verification and reporting.
Explore Opportunities
Earn Re points across DeFi with reUSD strategies
All strategies earn Re points. Higher multipliers = more points per dollar deposited.