Ethena Partners With Re to Offer up to 23% APY Through Reinsurance Risk Pools

CN
3 days ago

The integration allows users to lock USDe and sUSDe stablecoins into Re’s Risk Pools, managed by qualified Cell Managers, to generate yields from diversified reinsurance portfolios. Re’s X announcement reports potential returns of up to 23% APY, significantly higher than traditional DeFi staking options.

Re’s platform tokenizes insurance premiums, deploying capital into global reinsurance markets traditionally inaccessible to retail investors. “This is the first time crypto-native assets like USDe are connected to the $1T+ reinsurance market — a massive source of non-correlated, premium-based yield,” Re said.

Ethena’s USDe is backed by crypto collateral like staked ethereum (stETH) and bitcoin ( BTC), while Re operates on the Avalanche network. “Quarterly redemptions will be available. Re will offer early redemptions via Curve Finance soon,” Re stated.

Risks include market volatility, insurance underwriting losses, and regulatory hurdles. “This is the future of stablecoins,” the reinsurance platform concluded. “Not just yield — impact.”

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