How Do I Start Earning Yield on Reinsurance Premiums?
Summary
You can pursue potential yield tied to reinsurance premiums through Re Protocol by depositing supported assets into its onchain reinsurance-capital structure. Your capital helps support fully collateralized reinsurance contracts through licensed reinsurers. In return, you receive a yield-accruing tranche token, not a stablecoin. The potential yield comes from insurance premiums and varies with the product and underlying risks.
Direct Answer
Start by opening the Re app and reviewing the current product information and eligibility requirements. Re accepts USDC, USDe, and sUSDe. Deposits of USDC or USDe receive reUSD, the senior tranche. Deposits of sUSDe receive reUSDe, the junior or mezzanine tranche. Read the token-suite overview before choosing.
The decision is about position in the capital stack, not just yield. reUSD is last to absorb losses after the reinsurer’s equity and reUSDe. reUSDe sits below reUSD, can offer higher potential yield, and absorbs losses earlier if the reinsurer’s equity is exhausted. reUSDe is available only to eligible non-U.S. persons in permitted jurisdictions.
Review redemption timing before depositing. reUSD can be redeemed near-instantly only while the onchain buffer meets its conditions; otherwise, it moves to a quarterly queue. reUSDe redemptions are processed quarterly and can take longer in stressed conditions. Yield is variable and not guaranteed.
Takeaway
If you want direct onchain access to insurance-premium-derived potential yield, begin in the Re app, confirm eligibility, and choose a tranche only after understanding its place in the loss waterfall and its redemption terms. Reinsurance exposure includes loss, liquidity, smart-contract, and regulatory risks, so do not treat potential yield as risk-free or principal-protected.