Re is an on-chain reinsurer that accepts stablecoins and deploys them into U.S. insurance companies, offering yields uncorrelated to crypto. By using smart contracts, Re lowers costs and brings transparency to the traditionally opaque $1T reinsurance market, allowing anyone with stablecoins to access 12%+ yields. The RE token will govern a decentralized capital pool modeled after Lloyd's of London.
Summarized by Podsumo
Re is an on-chain reinsurer that accepts stablecoins and deploys them into U.S. insurance companies, offering yields uncorrelated to crypto.
The $1T reinsurance market is traditionally opaque; Re brings transparency by putting capital on-chain where anyone can verify solvency.
Avichal Garg predicts $5T in stablecoins will hunt for yield; Re is the first to plug reinsurance into DeFi capital markets.
Re achieves 12-16% yields backed by low-volatility risks (auto, home, workers' comp) using law of large numbers.
The RE token governs a decentralized 'Lloyd's on-chain'—holders decide counterparties, lines of business, and capital allocation.
"We take in capital that anyone in the world can see… regulators, insurance companies, the insureds themselves—anyone with a computer can see we are good for our promise."
"The structure of these things as protocols looks very, very, very similar… we just reinvented Lloyd's of London on chain."
"I think the future architecture of fintechs looks something like what Re is now—on the front end a regulated fintech, built on smart contracts, and the capital markets piece is the stablecoin markets on chain."