At Re, we’re excited to announce that reUSD is live on Silo Finance, unlocking new capital efficiency for holders across the Avalanche ecosystem.
Starting today, you can deposit reUSD, borrow USDC against it, and redeploy that capital across DeFi, all while keeping your reinsurance-backed position intact. AVAX rewards are also now live when you borrow or lend USDC.
What This Integration Unlocks
With this integration, reUSD becomes more than a yield-bearing asset. You can deposit reUSD as collateral and borrow USDC without selling your position. Your reinsurance-backed capital stays working while you access liquidity. This means you’re not forced to choose between earning reinsurance yield and accessing DeFi opportunities you can do both simultaneously.
The real power emerges when you start looping. Take your borrowed USDC and mint more reUSD. Deposit that reUSD again as collateral, borrow more USDC, and repeat. Each loop amplifies your exposure to reinsurance yield, compounding returns while you maintain control over your risk parameters. With AVAX rewards now live, you’re stacking incentives on top of your amplified yield.
Alternatively, take your borrowed USDC and deploy it wherever opportunity calls across Avalanche and beyond. Your capital can work on multiple fronts at once, earning returns across several strategies simultaneously.
Understanding Silo Finance
Silo Finance is a non-custodial lending protocol built around a unique isolated market architecture. Unlike traditional money markets, where all assets share the same pool, Silo creates separate lending markets for each asset pair.
If one asset de-pegs or experiences a black swan event, the risk stays contained to that specific market. It doesn’t cascade across the entire protocol, creating the kind of contagion we’ve seen devastate other lending platforms. This architecture aligns perfectly with Re’s disciplined approach to risk management. In reinsurance, diversification and isolation are core principles. Silo brings this same philosophy to DeFi lending, creating compartmentalized risk that sophisticated capital demands.
Why This Partnership Matters
Traditional reinsurance capital sits idle between deployments. It’s conservative, stable, and generates steady returns, but it’s not optimized for the composable world of decentralized finance. This integration changes that dynamic.
With Silo, reUSD holders can put capital to work across DeFi without sacrificing their core position. You maintain exposure to Re’s underwriting performance while accessing leverage and deploying borrowed capital elsewhere.
How Looping Amplifies Returns
Looping lets you amplify your position by recursively using borrowed capital to increase collateral. Deposit reUSD as collateral, borrow USDC against it, then use that USDC to purchase more reUSD. Repeat the cycle to compound your exposure.
Risk management becomes critical here. Monitor your loan-to-value ratio and maintain adequate buffers against liquidation. Conservative loopers typically stay below seventy percent LTV. The beauty of this strategy on Silo is that your risk remains isolated to the reUSD-USDC market.
Putting It Into Action
Getting started requires heading to the reUSD-USDC market on Silo Finance. Connect your wallet, deposit your reUSD, and choose your desired borrow amount. When selecting how much to borrow, stay within safe LTV parameters and think about your risk tolerance. If you’re new to looping, start conservatively.
Once you’ve borrowed USDC, decide on your deployment strategy. If you’re looping, swap that USDC for more reUSD immediately and repeat the deposit-borrow cycle. If you’re deploying elsewhere, consider which protocols offer the best risk-adjusted returns. Either way, you’re earning AVAX rewards on your borrowed or lent USDC. Claim your AVAX rewards regularly and compound them back into your strategy.
The Bigger Picture
This integration transforms reUSD from merely a yield asset into composable DeFi collateral. Silo’s isolated architecture keeps risk contained. Re’s reinsurance backing keeps capital stable. AVAX rewards add another incentive layer.
Together, they create a powerful combination for sophisticated DeFi users who want yield without unnecessary exposure to unrelated market risks.
Your reinsurance capital is now composable. Time to make it work.
About Re
Re is a decentralized reinsurance protocol that connects institutional and DeFi capital to fully collateralized insurance risk. We back insurance premiums through a regulated onchain structure, offering stable, low-correlation yield to capital allocators. Re is building a modern, global marketplace for onchain risk transfer.
Deposit now or learn more about our products, reUSD and reUSDe at re.xyz
About Silo Finance
Silo Finance is a decentralized lending protocol that lets users borrow and lend any crypto asset in isolated, capital-efficient markets. Each asset has its own “Silo,” reducing systemic risk while maximizing liquidity. Built for security and composability, Silo powers safer and more flexible onchain credit markets.