Re Protocol is a decentralized finance (DeFi) platform designed to connect blockchain-based capital with real-world reinsurance markets. It channels capital into structured insurance underwriting opportunities through tokenized financial instruments and regulated legal frameworks, allowing participants to gain exposure to the reinsurance asset class. ^[1]​

Overview

Re Protocol is a decentralized finance platform that connects blockchain-based capital with real-world reinsurance markets. Users deposit stablecoins into smart-contract pools known as Insurance Capital Layers (ICLs), which mint tokenized claims on the deposited capital. These tokens represent participation in different risk-return profiles. Deposited funds are held in multi-signature custody systems and tracked through on-chain reporting, while balances and related financial data are published through oracle feeds to provide transparency. Token values are updated regularly based on the performance of the underlying strategies and reference benchmarks.

Capital from the pools is deployed into reinsurance arrangements through legally structured surplus notes provided to vetted insurers. When drawn, funds are transferred to regulated trust accounts that serve as collateral for insurance policies, while corresponding financial data—such as balances, premium inflows, and claim outflows—are recorded on-chain through oracle updates. Liquidity mechanisms allow token holders to redeem funds either through available on-chain liquidity or scheduled withdrawal windows tied to the release of capital from reinsurance positions. Oversight mechanisms include actuarial reviews, third-party reserve attestations, and smart contract audits, while participation requires identity verification and compliance checks. ^[2]

Features

Insurance Capital Layer (ICL)

Insurance Capital Layers (ICLs) are the main custody and capital allocation structures within the Re Protocol. Each ICL functions as a vault that holds deposited stablecoins and manages their deployment into reinsurance-related financial arrangements. Deposits into an ICL are associated with a specific tokenized claim on the underlying capital, with each layer issuing a corresponding ERC-20 token. Idle funds are periodically transferred into custody vaults to reduce exposure within smart contracts, and balances are monitored through a combination of on-chain records and third-party attestations published via oracle feeds.

Capital held in an ICL may be deployed to reinsurance counterparties through legally structured surplus notes once agreements with licensed insurers are established. When capital is drawn, funds move to regulated trust accounts that serve as collateral or reserves for insurance policies. Premium income, claims activity, and repayments from these arrangements are reflected in the net asset value of the associated tokens. Liquidity for withdrawals is sourced from available vault balances and, when necessary, from external liquidity pools. Different ICLs correspond to different risk profiles and capital uses, such as lower-risk collateral structures or higher-risk loss-reserve positions within reinsurance programs. ^[4]

reUSD

​reUSD is a token issued within the Re Protocol that represents deposits into a lower-risk capital pool designed to generate yield while maintaining principal stability. Users mint reUSD by depositing stablecoins into an Insurance Capital Layer, where funds are held in custody and partially deployed through legally structured surplus notes that serve as regulatory collateral for partner reinsurers. The token accrues yield through gradual price increases rather than changes in token supply, with returns calculated daily based on the higher of two reference benchmarks: a short-term risk-free rate plus a fixed spread or the yield from a hedged cryptocurrency basis strategy plus the same spread. A portion of the underlying capital may also be held in cash or short-term government securities within regulated trust accounts that support reinsurance obligations. Pricing data, collateral balances, and reserve information are reported through oracle feeds and third-party attestations, while withdrawals depend on available on-chain liquidity and scheduled releases of capital from off-chain positions. ^[5]

reUSDe

​reUSDe is a token issued within the Re Protocol that represents participation in a higher-risk capital pool tied to reinsurance underwriting performance. It functions as a junior tranche in the protocol’s capital structure, absorbing losses from the underlying reinsurance portfolio before more senior layers. In exchange for assuming this risk, holders receive a share of underwriting profits that remain after claims, fees, and other obligations are paid. The token’s value compounds gradually based on a target net asset value derived from periodic portfolio performance assessments and updated through daily pricing. Deposited funds are deployed as contingent capital in reinsurance structures, while withdrawals are processed periodically based on the release of surplus capital following actuarial review. ^[6]

Reinsurance

Reinsurance is a financial arrangement in which an insurance company transfers a portion of its risk exposure to another insurer, known as a reinsurer. This process allows insurers to reduce the potential impact of large losses, maintain financial stability, and continue issuing policies without concentrating excessive risk on their balance sheets. Reinsurance agreements typically redistribute risk across multiple parties, helping insurers manage exposure to high-cost claims or catastrophic events.

The practice developed from early risk-sharing arrangements in maritime trade during the 14th century and later evolved into a formal global industry with specialized reinsurance companies. Today, reinsurance covers a wide range of risks—including property, casualty, life, and health insurance—and uses various contractual structures to allocate losses between insurers and reinsurers. It plays a central role in the insurance sector by enabling risk diversification, improving capital efficiency, and reducing financial volatility following major loss events such as natural disasters or large-scale crises. ^[7]

Funding

On September 28, 2022, Re Protocol announced that it had raised 100 million. The funding followed the winding down of Saroya’s previous insurtech venture, Cover, which had raised $27 million but was ultimately closed as policyholders were transitioned to other insurers. Tribe Capital incubated Re under its crypto labs program, supporting the platform’s development and launch. The funding is intended to advance Re’s mission of providing decentralized access to reinsurance capital, enabling tokenized participation in the global insurance surplus market. ^[3]

Partnerships

• Ink
• Pendle
• Morpho
• Euler
• Beefy Finance
• Spectra
• Silo Finance
• Blackhole Dex
• TermMax