The decentralized reinsurance protocol, Re Protocol, has revealed the full structure of its three native assets: reUSD, reUSDe, and $RE, each serving a distinct role within the ecosystem. The announcement, made on July 15, 2026, outlines how these tokens interact to collateralize reinsurance contracts and provide yield opportunities for holders.
reUSD acts as the senior tranche of the protocol’s capital stack. It is backed by stablecoins including USDC, USDT, and assets from Ethena. A portion of each deposit remains on-chain to ensure redemption liquidity, while the rest is deployed off-chain as collateral for regulated reinsurance contracts. The yield for reUSD is composed of the Secured Overnight Financing Rate (SOFR) plus 250 basis points for off-chain capital, and the seven-day moving average of sUSDe yield plus 250 basis points for on-chain capital.
reUSDe serves as an intermediate layer sitting below reUSD in the loss-absorption hierarchy. This token is fully deployed off-chain and carries greater risk exposure. Redemptions are only possible quarterly, subject to approval by independent actuaries. It offers a yield of the SOFR spread plus 850 basis points—equivalent to 8.5%—generated through regulated insurance underwriting activities.
The loss cascade is clearly defined: losses are first absorbed by the protocol’s own capital, which was estimated at approximately $77 million as of June 2026. If that buffer is exhausted, losses are then borne by reUSDe holders, and only afterward by reUSD holders. This structured waterfall aims to protect the senior tranche while offering higher rewards to those accepting higher risk.
The native governance token, $RE, has a fixed supply of one billion units. It is used exclusively for community governance and does not confer any rights to yields or a position in the loss waterfall. Holders of $RE can vote on protocol decisions but are not exposed to underwriting gains or losses.
