Re Protocol's Token Suite, Explained: reUSD, reUSDe, and $RE
A breakdown of Re Protocol's three-token system. reUSD and reUSDe are yield-bearing deposit tokens that fund reinsurance collateral, while $RE is the governance instrument that lets holders shape the protocol itself.
Re Protocol’s Token Suite, Explained: reUSD, reUSDe, and $RE
Re Protocol issues a trio of distinct assets. reUSD and reUSDe are yield-bearing deposit tokens that fund real-world reinsurance collateral. $RE functions in a category of its own, serving as a governance instrument that allows holders to shape the rules of the protocol itself. Understanding the role each plays is key to understanding how Re works as a whole.
reUSD: The Senior Tranche.
reUSD sits at the top of Re’s capital stack. Depositors receive reUSD in exchange for stablecoins or Ethena assets (USDC, USDT, USDe, sUSDe). Part of each deposit is kept onchain for redemption liquidity; the rest is deployed offchain for use as collateral to back reinsurance contracts.
As the senior layer, reUSD is the last tranche to absorb losses. It’s shielded from loss by Re’s own capital (the junior layer, approximately $77M as of June 2026) and by reUSDe (the mezzanine layer). reUSD earns a blended yield based on how protocol capital is proportionally deployed: offchain capital earns the SOFR rate plus 250 bps (2.5%), while onchain capital earns the seven-day trailing average sUSDe basis trade rate plus 250 bps.
reUSDe: The Mezzanine Tranche.
reUSDe occupies the capital layer below reUSD. It is intended to be deployed fully offchain as collateral to back reinsurance contracts.
Whereas reUSD is designed to be liquid and sits furthest from loss, reUSDe carries slightly elevated risk and is intended as a longer-duration instrument. It absorbs losses before reUSD, albeit after Re’s own capital. Because it is typically deployed in full and locked into trusts as collateral, reUSDe is available for redemption only during stipulated windows rather than on a continuous basis.
In exchange for its slightly elevated risk profile and lesser liquidity compared to reUSD, reUSDe benefits from a greater spread: SOFR plus 850 bps (8.5%), sourced from regulated insurance underwriting activity.
How the Layers Relate.
Together, reUSD and reUSDe form a two-tier capital stack layered on top of Re’s own capital. Losses are absorbed in a strict, defined order: each layer shields the one above it until it is exhausted.
$RE: The Governance Layer.
The $RE token is the protocol’s community governance instrument. Staking $RE allows holders to vote on proposals, serve as delegates, and sit on protocol committees covering areas of protocol mechanics such as:
- Market admissions
- Risk standards
- Treasury decisions
- Technical governance
$RE has a fixed total supply of one billion tokens. The supply is distributed across the ecosystem, investors and advisors, and core contributors, largely under multi-year vesting schedules. Staking rewards are incentives for participation only.
Side-by-Side Comparison.
| reUSD | reUSDe | $RE | |
|---|---|---|---|
| Role | Yield-bearing deposit token | Yield-bearing deposit token | Governance token |
| Capital stack position | Senior (last to absorb losses) | Mezzanine (absorbs losses before reUSD) | Not part of the capital stack |
| Accepted collateral | USDC, USDT, USDe, sUSDe | USDe, sUSDe | N/A; acquirable via exchanges |
| Yield source | Blended SOFR / sUSDe rate plus 250 bps | SOFR plus 850 bps | No yield claim; staking rewards are governance incentives, not passive income |
| Liquidity | Near-real-time redemption when liquidity is available, else queued quarterly | Quarterly redemption windows, subject to regulatory approval and collateral release | Subject to staking lockups, cooldowns, and unbonding periods |
| Risk profile | Lower; protected by Re’s own capital and the reUSDe layer | Higher; absorbs losses before reUSD | Governance and slashing risk rather than market loss exposure |
| Total supply | Variable (mint and redeem against deposits) | Variable (mint and redeem against deposits) | Fixed at 1,000,000,000 |
Disclosures
This blog post is for informational and educational purposes only and does not constitute investment, legal, tax, or financial advice. Nothing in this article should be construed as an offer or solicitation to buy or sell any security, token, or financial product.
Affiliate disclosure. The "re" brand, the re protocol, and re.xyz are operated by Resilience Foundation Cayman LLC ("Resilience Foundation"), an Exempted Limited Guarantee Foundation Company incorporated in the Cayman Islands with Limited Liability with registered number IC-414560, together with its affiliate Resilience (BVI) Ltd and Resilience Inv SPC. Resilience Foundation, Resilience BVI, and Resilience Inv do not provide insurance or reinsurance services, do not act as insurance broker or agent, and do not hold an insurance license. All regulated reinsurance activities are conducted exclusively by Cover Reinsurance SPC Ltd. ("Cover Re SPC"), a Class B(iii) licensed exempted segregated portfolio company in the Cayman Islands, operating under the "Cover Re" brand at coverre.com.
Access and eligibility. reUSDe is available exclusively to non-U.S. persons, as defined under Regulation S of the U.S. Securities Act of 1933, in specific permitted jurisdictions. Use by U.S. persons or residents is strictly prohibited. reUSDe may be classified as a security in certain jurisdictions, and participation is subject to eligibility requirements, KYC/AML verification, and jurisdiction-specific restrictions. reUSDe is not a bank deposit, is not FDIC insured, and is not government backed.
Yield. reUSDe yield is variable, is not guaranteed, and may change at any time. Any references to yield, APR, APY, returns, or performance are informational only, and past performance is not a reliable indicator of future results. The value and stability of reUSDe are subject to market volatility, smart contract vulnerabilities, regulatory uncertainty, and the performance of underlying collateral and protocol activity.
Risk disclosure. Digital assets and blockchain-based products involve significant risk, including the potential loss of principal, smart contract vulnerabilities, liquidity constraints, and regulatory uncertainty. Any references to APR, returns, or performance are not guaranteed, and past performance is not a reliable indicator of future results.
$RE governance token. $RE is the governance token of the Re Protocol, issued by the Resilience Foundation. It is a governance instrument, not an investment, and confers no equity, debt, dividend, profit-sharing, or fee rights and no claim on Re's revenue, premiums, reserves, collateral, deposits, or treasury. Governance is being introduced in phases and is subject to change. Availability of $RE is subject to jurisdiction-specific restrictions.
Regulatory environment. The regulatory environment for digital assets, stablecoins, tokenized real-world assets, and onchain financial products is dynamic and continues to evolve across jurisdictions. The information in this post reflects the understanding as of the date of publication and may not reflect subsequent legal or regulatory developments. Readers should consult qualified legal, tax, and financial professionals before making any decisions.
Terms apply. For full terms, disclosures, and risk disclaimers, please see the Re website at https://re.xyz, Terms of Service, and Disclaimers.