Re connects risk to capital

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For decades, reinsurance has operated on an assumption few outside the industry would accept: that capital must be trapped. Allocators commit for years, sometimes even after realizing profits, with no secondary market, no liquidity, and no visibility into how their funds are performing. This lockup has been treated as a function of the industry rather than its flaw. Re changes that by making liquidity a design property, not an exception.

“In reinsurance, capital is typically locked up for years — sometimes even after investors have realized a profit — because of regulatory requirements. Re is still subject to those same standards, but we’ve worked hard to solve this problem for our capital providers. What’s seen as normal in reinsurance — trapped capital — is one of the biggest pain points for investors, and we’ve designed redemptions and secondary liquidity to eliminate it. Something that feels unusual in DeFi is simply the status quo in reinsurance, and that’s what we’ve changed.” — Karn Saroya, CEO of Re

“In reinsurance, capital is typically locked up for years — sometimes even after investors have realized a profit — because of regulatory requirements. Re is still subject to those same standards, but we’ve worked hard to solve this problem for our capital providers. What’s seen as normal in reinsurance — trapped capital — is one of the biggest pain points for investors, and we’ve designed redemptions and secondary liquidity to eliminate it. Something that feels unusual in DeFi is simply the status quo in reinsurance, and that’s what we’ve changed.” — Karn Saroya, CEO of Re

Breaking the Trap

In most financial markets, such captivity would be inconceivable. Crypto investors, for example, move fluidly between protocols, stake and un-stake positions, and maintain optionality across strategies. The idea of tying capital down for years with no way out is antithetical to how modern capital markets operate. Optionality isn’t a perk, it’s table stakes for sophisticated allocators.

Re is changing this by introducing redemptions for its deposit tokens. Allocators can now exit instantly when liquidity is available or queue their redemptions for pro-rata settlement. This is a fundamental shift: the industry’s assumption that capital must remain locked is being replaced by a model that respects investor freedom while meeting regulatory requirements. Exits are processed against on-chain NAV with transparent queue positions and timestamps.

“To enable redemptions, we overcollateralize and tranche reinsurance obligations. Outside of potential for asset growth and security and risk management, redemptions are the key consideration for people who deploy capital on-chain. The key insight is architectural: instead of confining capital to guarantee availability, Re designs systems that make redemptions both safe and sustainable.” — Karn Saroya

“To enable redemptions, we overcollateralize and tranche reinsurance obligations. Outside of potential for asset growth and security and risk management, redemptions are the key consideration for people who deploy capital on-chain. The key insight is architectural: instead of confining capital to guarantee availability, Re designs systems that make redemptions both safe and sustainable.” — Karn Saroya

The Architecture of Liquidity

Re’s design ensures that safety isn’t sacrificed for freedom. Pools are deliberately overcollateralized, redemptions are governed by daily limits, and transparency on-chain gives allocators the ability to independently verify pool health. Investors can choose instant exits when available, or quarterly redemptions for planned liquidity, without undermining claims-paying capacity.

This is more than an improved user experience. It is a fundamental rethinking of the relationship between capital providers and reinsurance operations. Instead of demanding the sacrifice of control as the price of participation, Re provides optionality and transparency as the foundation of participation. The result: stable reinsurance yield, programmatic exits and verifiable solvency — simultaneously.

Unlocking New Capital

Traditional lockups didn’t just frustrate existing allocators — they excluded whole categories of investors. By removing those barriers, Re opens reinsurance to institutions that require flexibility, family offices balancing liquidity needs, and crypto natives who view exit optionality as a baseline. As liquidity deepens, participation can scale without compromising claim priority or pool solvency.

“Certainly, nothing like this exists in the global insurance and reinsurance markets in such a transparent and programmatic way. Our view is that with liquidity, we beget the trust of the DeFi markets, and with that scale. Eventually, we’ll work with a broad cross section of the insurance market on enabling them in a similar manner.” — Karn Saroya

“Certainly, nothing like this exists in the global insurance and reinsurance markets in such a transparent and programmatic way. Our view is that with liquidity, we beget the trust of the DeFi markets, and with that scale. Eventually, we’ll work with a broad cross section of the insurance market on enabling them in a similar manner.” — Karn Saroya

Beyond Redemptions

Redemptions are just the beginning. Re is building an ecosystem where reUSD lives not only inside the protocol but across secondary markets like Curve and Morpho. What may feel ordinary in DeFi is entirely new to reinsurance, on-chain or off. This is the breakthrough: liquidity and optionality becoming part of the industry’s core infrastructure.

The Bigger Picture

Reinsurance is a beautiful, necessary industry. It provides the backstop that economies rely on when instability strikes, and resilience requires capital. By freeing capital from lockups, Re is expanding the funnel, making it possible for more allocators to participate in sustaining that resilience. More flexible capital means more capacity when it’s needed most.