reUSD (Re Protocol) — Risk Report
Moderate risk · 5.0/10
Senior NAV-accruing reinsurance tranche issued by Resilience BVI Ltd.
Issuer dashboard · Independent backing monitor
Summary
reUSD is Re Protocol’s senior reinsurance tranche. Re capital and the reUSDe mezzanine tranche absorb underwriting losses before reUSD. Capital supports fully collateralised reinsurance contracts through licensed insurers and a U.S. §114 Reinsurance Trust Account. Yield accrues through NAV appreciation.
At Ethereum block 26,181,031, October 13 03:58:23 UTC, measured NAV was $1.1067874545 and Ethereum claims were $299.720M. Re’s issuer TVL was $321.291M, dated October 12 00:00 UTC. The approximately $21.571M difference mixes timestamps and Ethereum claims with issuer TVL whose supply scope is uncertain. It does not establish a reserve deficit or a confirmed API error. Published seven-day simple APY was 7.01%.
Re declares deployments on 14 chains, including Sei. The principal constraints are incomplete contractual cushion evidence, primary-redemption exclusion for U.S. holders, and administrative paths beyond the token-upgrade timelock.
1 · Stability — 7.0
reUSD accrues against NAV rather than targeting a $1 peg. Its relevant market measure is discount to NAV. The measured NAV history has been monotonic, and secondary pricing generally tracked NAV closely after early-launch discounts.
The October 13 on-chain NAV was $1.1067874545. Re annualises seven-day NAV changes linearly; the published 7.01% simple APY is not directly comparable with a compounded recomputation.
Risks and limitations. NAV is sourced from issuer-controlled valuation infrastructure. A smooth series does not establish an independently reproducible or executable mark. Insurance losses can emerge long after policies are written, and restricted redemption can allow market prices to detach from NAV.
2 · Backing — 5.0
The loss waterfall runs through reinsurance premiums, Re capital, reUSDe and finally reUSD. Off-chain assets sit within the reinsurance and trust structure, alongside capital available on-chain. The Network Firm provides daily attestations, Chainlink carries Proof-of-Funds information, and Grant Thornton (Cayman) performs the financial audit.
| Issuer measure | October 12 value |
|---|---|
| On-chain capital | $233.248M |
| Off-chain capital | $183.122M |
| reUSD TVL | $321.291M |
| reUSDe TVL | $21.169M |
| Residual non-tokenised capital | $73.909M |
The residual is the two capital measures less the two token TVLs. It is 23.00% of reported reUSD TVL; reUSDe is 6.59% on that same senior-TVL denominator. Residual capital has remained broadly flat as senior TVL grew, thinning the relative layers beneath reUSD.
Re’s approximately $77M June 2026 product-page figure describes balance-sheet equity. Historical scenario material used approximately $20M for a narrower waterfall layer. Neither establishes today’s contractual amount subordinated ahead of reUSD.
Risks and limitations. No current attachment percentage or tranche-specific collateral ratio is supportable from the published data. Combined-program assets are not allocated between the tranches, and attestation does not make off-chain treaties independently observable.
3 · Liquidity & Exit — 4.5
Eligible non-U.S. holders can use primary redemption; U.S. holders depend on secondary markets. Current policy permits instant redemption while a chain’s buffer exceeds 1% of supply, with a quarterly queue below that trigger. Documented limits include a 1,000,000 reUSD transaction maximum and a 6bp fee.
At Ethereum block 26,181,136 on October 13, InstantRedemption was unpaused, paid sUSDe, and reported 22,180,337.768096 sUSDe of remaining daily gross-payout capacity. Total contract-reported capacity was 106,223,711.406236 sUSDe. Daily/user limits were 20%/10%, and the fee was 6bp. Capacity is denominated in the payout token; KYC, wallet usage, transaction limits and execution guards still determine whether a particular wallet can redeem.
The October 12 23:48:30 UTC routed reUSD→native-USDC ladders measured execution-rate deterioration from each chain’s $100 baseline:
| Chain | 2% marginal-impact depth |
|---|---|
| Ethereum | ≥$10M tested; the grid ended without a crossing |
| Arbitrum | $2.336M–$2.354M crossing bracket |
| Avalanche | $5.605K–$5.641K crossing bracket |
| Base | Invalid quotes; usable depth unestablished |
Risks and limitations. These indicative router measurements describe marginal deterioration, not total loss against NAV. They cannot be summed into global exit capacity. Arbitrum’s independently computed 50bp and 200bp brackets are inconsistently nested and require producer review. Other deployments remain unmeasured. Ethereum primary redemption adds an sUSDe→USD leg, and measured capacity does not establish access for an arbitrary wallet.
4 · Dependencies — 5.0
reUSD depends on Re’s reinsurance book, custody and attestation stack, valuation infrastructure, bridge liveness, and the assets used for capital and settlement. Ethena reaches the asset through reserve holdings, the idle-capital yield reference and the measured Ethereum sUSDe redemption payout. Cross-chain distribution uses Chainlink CCIP.
DefiLlama’s combined Re program TVL was $414.963M at October 13 02:37:59 UTC: sUSDe 51.96%, USDC-labelled assets 46.55%, USDT 1.14%, and USDe 0.35%. The adapter records the Avalanche off-chain-assets oracle value under USDC. The USDC-labelled category therefore includes off-chain assets and cannot be read as an on-chain cash allocation.
Risks and limitations. These program-wide categories have no tranche allocation and establish no reUSD-only coverage ratio. An Ethena impairment can affect capital, yield and Ethereum settlement together. Off-chain custody, underwriting counterparties and financial attestations cannot be verified solely from Ethereum state.
5 · Contract & Admin — 4.0
The canonical Ethereum token is 0x5086bf358635b81d8c47c66d1c8b9e567db70c72. Its token-upgrade path uses a 3-of-5 Safe through a 48-hour OpenZeppelin TimelockController at 0x69dDEa332723cF5407151aAF68B9b076557FCA93. An independent canceller EOA can veto queued actions; its custody and readiness remain unverified. Role enumeration is unsupported, so the complete holder set is not established.
The current Ethereum NAV oracle is 0xb45AC37Cc7fF7ec317e7D8C308781ECe431639f6. At block 26,181,136, it returned normal/force bands of 50/150bp, a 200bp cumulative budget over 14 days, 36-hour staleness, a four-hour minimum force interval, and a hard 24-hour markdown delay with a matching floor. Protection mode was off. These measured guardrails substantially agree with Re’s current documented oracle architecture.
Re’s registry also describes replacement oracles, CRE/CCIP feed pairs, redemption modules, per-chain controllers and timelocks. The Safe reaches undelayed mint authority, can grant itself ICL upgrade authority without delay, and owns CCIP pools whose configuration is not timelocked. The token-upgrade delay therefore covers only part of the administrative surface.
Re’s audit registry lists Sherlock’s July 2026 collaborative review, Certora’s September 2025 formal verification, and Hacken engagements covering NAV Oracle (March 2025), core contracts (November 2024) and DeFi contracts (August 2024). Engagement scope is documented.
Risks and limitations. Audited-commit correspondence to every deployed implementation and new oracle component remains unverified, including coverage of privileged roles and upgrade paths. Public bug-bounty coverage of these authorities is unestablished. The Ethereum oracle and redemption reads do not close role/selector delays, alternative writers or authority across all 14 deployments. Audits do not constrain immediate administrative reach.
6 · Issuer — 5.5
Re’s product and legal disclosures identify Resilience BVI Ltd., a BVI FSC-regulated issuer using institutional custody, bank accounts and daily attestation. Holders have limited direct claims on trust assets; the offshore legal structure and restricted redemption access materially affect recourse.
Risks and limitations. The trust bank, carrier and cedent counterparties are not publicly identified. Current contractual subordination, accountable principals, governing-law details and dispute procedures were not independently refreshed in this follow-up. Issuer 5.5 is carried from the existing assessment rather than re-derived from a new legal review.
Suitability
reUSD suits an eligible holder seeking senior reinsurance yield who can tolerate restricted exit and reliance on off-chain institutions. It is unsuitable as a cash substitute or as a position whose plan depends on immediate redemption. For a U.S. holder, chain-local secondary depth is decisive. Leveraged use adds liquidation risk to an issuer-defined mark.
What to watch
- Contractual capital subordinated ahead of each tranche and changes in the reUSDe/reUSD TVL relationship.
- Wallet-specific primary eligibility, remaining capacity and the complete sUSDe→USD exit.
- Chain-local executable depth, including resolution of Arbitrum’s threshold inconsistency.
- Implementation changes, oracle guardrails and authority on every declared deployment.
- Tranche-attributed reserves and reserve-category definitions.
- Browser-rendered confirmation of the backing monitor’s current liquidity rating.
Revision history
- 2026-10-13 — targeted follow-up; scores unchanged. Adopted the $1.1067874545 on-chain NAV and $299.720M Ethereum claims, with explicit timestamp/scope limits against October 12 issuer TVL. Added October 12 chain-local ladders, pinned Ethereum redemption and oracle controls at block 26,181,136, corrected DefiLlama category interpretation, and restored audit engagement dates and coverage limits. Replaced unrestricted-writer and stale global-liquidity descriptions. The October 2 Healthy 10/10 discrepancy is historical; current rendered verification remains pending. Withdrawn 9.66%/7.94% attachment ratios and historical $20M scenario capital are not current cushion measures. Overall remains 5.0; whole-body verification remains 2026-08-25.
- 2026-10-13 — content-first refresh. Updated supply, APY, issuer TVL, residual capital and declared Sei deployment; moved revision commentary to history.
- 2026-10-04 — attachment basis withdrawn. Retired unsupported current attachment percentages and expanded the declared chain list.
- 2026-09-06 — Backing 5.5→5.0 and Liquidity & Exit 5.0→4.5. Recorded dilution through senior growth and primary-redemption exclusion as the binding exit constraint.
- 2026-08-31 — six-axis migration. Contract & Admin 4.0, Issuer 5.5 and Overall 5.0.
- 2026-08-27 — supply, NAV and tranche sizes re-measured. Ethereum-only and issuer-wide quantities were recorded separately.
- 2026-08-18 — audit and upgrade-delay evidence added.
- 2026-07 — cross-chain distribution moved to Chainlink CCIP.
- 2026-06-18 — $RE launched and Season-1 points became claimable.