{"id":"reusd","title":"reUSD","content":"**reUSD** is a stable, principal-protected, and yield-bearing token developed within the [Re Protocol](https://iq.wiki/wiki/re-protocol) ecosystem. It is designed to generate predictable, low-risk yield denominated in U.S. dollars. reUSD represents a depositor's share in a lower-risk capital pool that is structured to preserve the underlying principal while generating returns by providing collateral to the regulated reinsurance market. [\\[1\\]](#cite-id-7BzGhnopPhDEF2RZ)​\n\n## Overview\n\n**reUSD** is a token issued within the [Re Protocol](https://iq.wiki/wiki/re-protocol) that represents deposits into a lower-risk capital pool designed to generate yield while maintaining principal stability. Users [mint](https://iq.wiki/wiki/minting) reUSD by depositing [stablecoins](https://iq.wiki/wiki/stablecoin) into an Insurance Capital Layer, where funds are held in custody and partially deployed through legally structured surplus notes that serve as regulatory [collateral](https://iq.wiki/wiki/collateral) for partner reinsurers. The token’s value increases gradually through accrued yield rather than through changes in token supply.\n\nYield is 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](https://iq.wiki/wiki/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, reserve balances, and [collateral](https://iq.wiki/wiki/collateral) information are reported through [oracle](https://iq.wiki/wiki/oracle) feeds and third-party attestations, while withdrawals are supported through available on-chain liquidity and scheduled releases of capital from off-chain positions. [\\[3\\]](#cite-id-kVp3dgtA1192JUUS) \n\n## Mechanism and Technology\n\nThe reUSD system integrates on-chain [smart contracts](https://iq.wiki/wiki/smart-contract) with off-chain legal and financial structures to manage capital, generate yield, and provide liquidity for users. The core components include its value accrual method, yield generation strategy, capital deployment structure, and redemption framework. [\\[3\\]](#cite-id-kVp3dgtA1192JUUS) \n\n### Value Accrual Mechanism\n\nUnlike rebasing tokens that adjust the quantity of tokens in a holder's wallet, reUSD is a price-appreciating token. The number of reUSD tokens a user holds remains constant. Instead, the intrinsic value and redemption price of each reUSD token increase over time. This price is updated on-chain once every day at 00:00 UTC to reflect the yield accrued over the previous 24 hours. This design provides users with a clear and predictable growth in the dollar value of their holdings. [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)​\n\n### Yield Generation\n\nThe [annual percentage yield (APY)](https://iq.wiki/wiki/annual-percentage-yield-apy) for reUSD is determined through a dynamic, dual-benchmark model named \"Basis-Plus\". The protocol calculates the applicable rate daily by selecting the higher of two distinct benchmark yields and then adding a fixed spread to it. This approach aims to provide a competitive yield by capturing upside from either traditional finance rates or [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) market-neutral strategies. [\\[1\\]](#cite-id-7BzGhnopPhDEF2RZ) [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)​\n\nThe two benchmarks are:\n\n1. **Risk-Free Rate Benchmark:** This is based on the 7-day trailing average of a benchmark short-term risk-free interest rate, derived from instruments like U.S. Treasury bills.\n2. **Market-Neutral Strategy Benchmark:** This is based on the current annualized yield generated from a hedged [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) basis trading strategy, specifically referencing the yield from [Ethena's USDe](https://iq.wiki/wiki/usde).\n\nTo the higher of these two selected benchmark rates, the protocol adds a fixed spread of **250 basis points (2.5%)**. This final combined rate determines the APY for the day. The calculated APY is then converted into a daily rate, which is used to increase the price of reUSD. [\\[5\\]](#cite-id-jqXjT9ablhU5hwXT) [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)​\n\n### Capital Structure and Deployment\n\nThe protocol's capital structure is designed to channel user deposits from the DeFi ecosystem into a regulated, off-chain framework suitable for the reinsurance industry.\n\n#### Minting and Insurance Capital Layer (ICL)\n\nUsers initiate the process by depositing approved assets, such as [USDC](https://iq.wiki/wiki/usdc) or T-Bills, into an on-chain [smart contract](https://iq.wiki/wiki/smart-contract) system called the Insurance Capital Layer (ICL). In exchange for their deposit, the user [mints](https://iq.wiki/wiki/minting) an equivalent value of reUSD tokens. The ICL acts as the primary on-chain vault and accounting ledger for all user deposits. [\\[4\\]](#cite-id-V2ByClf6JDM4AVVg) [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)​\n\n#### Off-Chain Deployment and Trust Accounts\n\nA significant portion of the capital deposited into the ICL is moved off-chain. These funds are converted into cash or short-term U.S. Treasury Bills and placed into a regulated §114 Reinsurance Trust Account. This type of trust is compliant with the standards set by the National Association of Insurance Commissioners (NAIC) in the United States and serves as fully-collateralized, bankruptcy-remote capital for partner reinsurance companies. This legal and structural separation is a core component of the protocol's principal protection design, intended to shield depositor funds from the protocol's operational activities or potential losses. [\\[1\\]](#cite-id-7BzGhnopPhDEF2RZ) [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)​\n\n#### Surplus Notes\n\nThe connection between the on-chain ICL and the off-chain trust account is managed through legal instruments called \"surplus notes.\" An off-chain legal entity, affiliated with the protocol, issues these surplus notes to the on-chain ICL. These notes are contractual debt agreements that legally bind the off-chain entity. They serve two primary functions:\n\n1. **Principal Protection:** The notes include a contractual guarantee for the return of the principal amount deposited.\n2. **Interest Payments:** The notes are obligated to pay interest to the ICL at a rate that matches the dynamically calculated APY of reUSD.\n\nThese interest payments from the surplus notes are the source of the yield that causes the reUSD price to appreciate. This structure effectively translates the off-chain collateralization arrangement into on-chain yield for token holders. [\\[4\\]](#cite-id-V2ByClf6JDM4AVVg) [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)​\n\n### Liquidity and Redemption\n\nreUSD is designed to be redeemable for the underlying [stablecoins](https://iq.wiki/wiki/stablecoin), though redemptions are subject to liquidity constraints based on the capital's deployment. The protocol uses a tiered liquidity framework to manage withdrawal requests. [\\[3\\]](#cite-id-kVp3dgtA1192JUUS) [\\[4\\]](#cite-id-V2ByClf6JDM4AVVg) \n\n* **Tier 1: Instant Redemptions:** A portion of the total capital, known as the on-chain buffer, is kept idle and is not deployed off-chain. This buffer provides instant liquidity for user redemptions. The size of this buffer is determined by actuarial analysis, cited at approximately 10% of the Net Asset Value (NAV) in examples, and is designed to handle typical daily withdrawal volumes.\n* **Tier 2: Scheduled Redemptions:** If the instant redemption buffer is depleted by large or numerous withdrawals, subsequent redemption requests enter a queue. These queued requests are processed as capital becomes available. Sources of this returning capital include interest payments and principal repayments from the off-chain surplus notes, as well as the maturation of assets held within the reinsurance trust account.\n\n## Transparency and Security\n\n​[Re Protocol](https://iq.wiki/wiki/re-protocol) employs several measures to provide transparency into its operations and secure user funds, involving on-chain data publication, third-party attestations, and institutional-grade custody.\n\n* **On-Chain Oracles:** The protocol utilizes [Chainlink](https://iq.wiki/wiki/chainlink) [oracles](https://iq.wiki/wiki/oracle) to publish critical data points to the blockchain for public verification. This data includes the daily reUSD price, the total Net Asset Value (NAV) of the ICL, the current utilization level of the instant liquidity buffer, and the outstanding balances of the off-chain surplus notes. [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)\n* **Reserve Attestations:** **The Network Firm**, a third-party accounting and auditing firm, performs daily attestations of the off-chain funds held in the reinsurance trust account. These reports verify the existence and value of the cash and T-bills backing the surplus notes. The results of these attestations are also published on-chain via a [Chainlink](https://iq.wiki/wiki/chainlink) [oracle](https://iq.wiki/wiki/oracle), providing independent verification of the protocol's reserves. [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)\n* **Custody:** [Idle](https://iq.wiki/wiki/idle) on-chain assets (the portion of the ICL not deployed off-chain) are held in custody with **Fireblocks**. Security is managed through multisig policies, requiring multiple parties to approve transactions, which reduces the risk of unauthorized access or single points of failure. [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)\n* **Audits:** The [smart contracts](https://iq.wiki/wiki/smart-contract) that comprise the on-chain components of the [Re Protocol](https://iq.wiki/wiki/re-protocol) have undergone security audits from third-party firms to identify and mitigate potential vulnerabilities. [\\[3\\]](#cite-id-kVp3dgtA1192JUUS)","summary":"reUSD is a stable, principal-protected, yield-bearing token within the Re Protocol. It generates predictable yield by gradually increasing its price, representing user deposits in a lower-risk capital pool that earns returns from benchmarked rates.","images":[{"id":"QmUmwbgSkLrikUFM2m6S1odmoFZWVPFKKRjnCaHqFYYMs2","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[{"id":"Stablecoins"},{"id":"Protocols"},{"id":"Ethereum"},{"id":"BinanceSmartChain"}],"media":[{"id":"QmNhRNuAk5KxDaKkAyrn9LjSonMZ5zQwxRviZfy1DbhvvQ","type":"GALLERY","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[\n  {\n    \"id\": \"7BzGhnopPhDEF2RZ\",\n    \"url\": \"https://re.xyz/\",\n    \"description\": \"reUSD overview and features\",\n    \"timestamp\": 1773321741333\n  },\n  {\n    \"id\": \"VNP46mQHCNEZYNIf\",\n    \"url\": \"https://www.coingecko.com/en/coins/re-protocol-reusd\",\n    \"description\": \"reUSD market data on CoinGecko\",\n    \"timestamp\": 1773321741333\n  },\n  {\n    \"id\": \"kVp3dgtA1192JUUS\",\n    \"url\": \"https://docs.re.xyz/insurance-capital-layers/what-is-reusd\",\n    \"description\": \"reUSD technical documentation\",\n    \"timestamp\": 1773321741333\n  },\n  {\n    \"id\": \"V2ByClf6JDM4AVVg\",\n    \"url\": \"https://re.xyz/blog/inside-re-s-capital-stack-how-reusd-and-reusde-unlock-insurance-yield\",\n    \"description\": \"Re Protocol capital stack explanation\",\n    \"timestamp\": 1773321741333\n  },\n  {\n    \"id\": \"jqXjT9ablhU5hwXT\",\n    \"url\": \"https://https.re.xyz/\",\n    \"description\": \"reUSD yield generation components\",\n    \"timestamp\": 1773321741333\n  }\n]"},{"id":"website","value":"https://re.xyz/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/re-protocol-reusd"},{"id":"references","value":"https://docs.re.xyz/insurance-capital-layers/what-is-reusd"},{"id":"contract_url","value":"https://etherscan.io/token/0x5084c8375a0345908e0631a9aa66aa85d459b70c72"},{"id":"arkham","value":"https://intel.arkm.com/explorer/token/re-protocol-reusd"},{"id":"arbiscan","value":"https://arbiscan.io/address/0x76cE01F0Ef25AA66cC5F1E546a005e4A63B25609"},{"id":"base","value":"https://basescan.org/token/0x7D214438D0F27AfCcC23B3d1e1a53906aCE5CFEa"},{"id":"bscscan","value":"https://bscscan.com/token/0xbA9425EC55ee0E72216D18e0ad8BBbA2553bFb60"},{"id":"commit-message","value":"\"Added reUSD wiki page\""}],"events":[{"id":"197a07b0-9f97-4e57-8aad-8774f538daf0","date":"2025-07","title":"reUSD All-Time Low Price","type":"DEFAULT","description":"The price of reUSD reached an all-time low of $0.8734.","link":"https://www.coingecko.com/en/coins/re-protocol-reusd","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"c630e261-ca5b-422f-a8eb-aa0b27ca9582","date":"2025-10","title":"reUSD All-Time High Price","type":"DEFAULT","description":"The price of reUSD reached an all-time high of $1.08.","link":"https://www.coingecko.com/en/coins/re-protocol-reusd","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"date":"2026-03-12","title":"reUSD Founded","type":"CREATED","description":"reUSD was founded and officially launched.","id":"83e86498-2e10-4c91-823f-b1a0581f7665"}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"operator":{"id":"0xacb6c5AD52b8f605299B0d774CE97F26e3DB80c2"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum","arbitrum","base","binance-smart-chain","avalanche","re-protocol"],"founders":[],"speakers":[]}}