Re Protocol reUSDPrice

(REUSD)

Re Protocol democratizes access to reinsurance risk by tokenizing exposure to insurance contracts. reUSD serves as the "stable core" of this protocol. It aims to provide a low-volatility, USD-denominated asset that safeguards principal, accrues daily yield, and remains redeemable. It effectively functions like a tokenized money-market fund, blending blockchain composability with the yield generation of real-world reinsurance. This allows stablecoin holders to access a stable, yield-bearing asset without direct underwriting exposure.

The Re Protocol channels on-chain capital into real-world reinsurance treaties through a transparent, blockchain-native workflow. Users deposit stablecoins (like USDC, DAI, USDe, sUSDe) into Insurance Capital Layers (ICLs). These deposits then mint either reUSD or reUSDe. For reUSD, its token price increases daily, based on a calculated "Applicable APY." This APY is determined by taking the higher of a risk-free rate plus 250 basis points or the Ethena basis-trade yield plus 250 basis points. Chainlink pushes this transparent price feed on-chain.

reUSD generates yield through a dual-source mechanism, adopting the higher of a risk-free rate plus 250 basis points or the Ethena basis-trade yield plus 250 basis points. Capital is deployed off-chain via Surplus Notes to supply regulatory capital for reinsurance. While reUSD is designed for principal protection, it carries risks. A notable incident involved a $10 million reUSD bad debt issue due to an exploit manipulating an oracle and exchange rate. This highlights that despite protective designs, smart contract vulnerabilities, oracle risks, and broader market conditions can impact principal.

In June 2025, the Resupply Protocol faced a $10 million reUSD bad debt problem. This occurred due to an attacker exploiting a vulnerability that manipulated the price of a crvUSD-wstUSR pair, affecting oracle and exchange rate calculations. The team responded with a remediation plan to mitigate the impact. This plan included burning 6 million reUSD from the protocol's insurance pool to reduce the immediate debt. The remaining debt is intended to be repaid through future revenue sources generated by the Decentralized Autonomous Organization (DAO).

reUSD and reUSDe serve different purposes within the Re Protocol. reUSD is designed as a principal-protected, fixed-yield product. It aims for low-volatility yields (typically 6%-10% APY) by tracking the higher of a risk-free rate plus 250 bps or the Ethena basis-trade yield plus 250 bps. In contrast, reUSDe is a risk-bearing, variable-yield option. It offers potentially higher underwriting yields (15%-23% APY) but requires holders to absorb portfolio losses while also capturing surplus profits from the underlying reinsurance treaties.

reUSD offers a stable, yield-bearing asset for stablecoin holders seeking consistent income without directly engaging in underwriting risk. Its design prioritizes on-chain composability, allowing it to integrate seamlessly into various decentralized finance ecosystems. For instance, reUSD can be utilized as collateral in prominent DeFi protocols. This flexibility enables users to leverage their reUSD holdings for broader financial strategies within the blockchain space, such as liquidity provision or borrowing, thereby expanding its utility beyond just yield accrual.