Re Protocol (RE) is an institutional infrastructure protocol that connects the traditional reinsurance market with the blockchain ecosystem.
Reinsurance refers to the process by which insurance companies insure their own risks. To avoid bearing the full burden of risks arising from major disasters or high-cost claims, insurance companies transfer a portion of these risks to reinsurance companies. Re Protocol provides access to risks in this traditional and relatively closed reinsurance market through on-chain capital. However, the actual reinsurance activities are not conducted directly on-chain; they are carried out through licensed entities.
Re Protocol serves as a bridge between decentralized finance (DeFi) liquidity and the demand for reinsurance coverage in the global reinsurance market through licensed insurance structures.
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How Does Re Protocol (RE) Work?
Re Protocol’s infrastructure is based on a mechanism known as the “Insurance Capital Layer.” In this system, the provided crypto liquidity is used to collateralize fully collateralized quota-share reinsurance agreements through licensed insurance and reinsurance structures.
The platform offers two primary tokenized products for users looking to put their capital to work:
- reUSD: A senior tranche structure with a lower risk profile.
- reUSDe: A junior tranche structure that carries higher risk but offers greater yield potential.
When users deposit stablecoins (USDC or USDe) into these pools, they receive reUSD or reUSDe tokens based on their preferred risk and yield profile. Returns generated from reinsurance agreements are directly reflected in the value and yield mechanism of these products.
For transparency, off-chain collateral and reserve information is verified by the independent auditing firm The Network Firm. The verified reserve data is then brought on-chain through Chainlink oracles and made available transparently.
What Is the Function of the RE Token?
It is important to distinguish the RE token from the protocol’s yield-generating products, such as reUSD and reUSDe. The RE token is the native cryptocurrency of the ecosystem and forms part of the protocol’s governance, coordination, and security layers. Purchasing or staking RE does not provide direct ownership or entitlement to reinsurance premiums or protocol revenues. Premiums and reinsurance revenues are reflected only in the returns of liquidity providers participating in the relevant capital pools (reUSD/reUSDe).
Key Facts About Re Protocol (RE)
- Re Protocol was founded and launched by Karn Saroya, Anand Dhillon, and Ben Aneesh.
- Re Protocol is a reinsurance infrastructure that brings real-world assets (RWAs) onto the blockchain.
- The RE token is the native cryptocurrency of the Re Protocol ecosystem.
- RE is an ERC-20 token issued on the Ethereum blockchain.
- The RE token plays a role in governance, coordination, and voting processes within the protocol.
- The maximum supply of RE is capped at 1 billion tokens.
- Explore Re’s official website here and discover more detailed information here.
How to Store Re Protocol (RE)?
You can store and manage your RE assets using browser, desktop, mobile, and hardware wallets that support the Ethereum blockchain.
How to Buy and Sell Re Protocol (RE)?
You can buy and sell Re Protocol (RE) with Tether (USDT) using the BtcTurk | Global website or mobile app. If you’re not yet a member, you can easily register on our website or app and buy Re Protocol (RE) by depositing cryptocurrency.
