Deep Dive
1. Purpose and value proposition
Re Protocol aims to make reinsurance capital markets accessible through blockchain infrastructure. Stablecoin capital is directed to fully collateralized reinsurance contracts through licensed reinsurers. Reinsurance means an insurer transfers part of its risk to another party, helping manage large potential losses. Re Protocol documentation
2. RE token’s role
RE is the protocol’s governance, coordination, and security token. It is separate from reUSD and reUSDe, which are products associated with the capital pools. Holding RE should not be confused with holding those products or receiving their returns. CoinMarketCap’s description
Conclusion
Re Protocol uses blockchain to connect capital with real world reinsurance, while RE serves as a coordination and governance token rather than a reinsurance deposit product. How the protocol manages underwriting and risk sharing is central to its purpose.
