October (Re)cap:
โบ Total deposits passed $400M, 40 days after crossing $300M
โบ $2.3M in Oct yield accrued to reUSD & reUSDe holders
โบ reUSD markets live on @pendle_fi, @Morpho, & @Monad
โบ Five new reinsurance deals across multiple lines of business
Here's the full month โ
Re offers two options built for different risk profiles:
โ reUSD: for holders who prioritize liquidity and senior protection
โ reUSDe: for holders willing to absorb losses before reUSD, but only after Reโs own capital, in exchange for more yield
Both sit above Reโs first-loss capital, so Re takes losses before either token does.
Both earn yield the same way: a base rate plus a spread funded by reinsurance activity. Where a token sits in the capital stack, and how liquid it is, sets the size of its spread.
reUSD sits at the top of the stack. Its yield blends SOFR for offchain capital with the onchain bufferโs sUSDe rate, each plus a smaller spread that reflects its position behind both Reโs capital and reUSDe.
reUSDe sits mezzanine, between Reโs first-loss capital and reUSD. It redeems in quarterly windows and covers losses that exceed Reโs capital before they reach reUSD, so it carries a substantially larger spread and a higher yield.
@castle_labs illustrates both side by side in their latest analysis: