Reinsurance yield continues its march across DeFi.
Liquidity on Pendle’s reUSD and reUSDe markets has surpassed $10 million, a milestone that reflects growing demand for transparent, sustainable onchain yield sourced from real insurance premiums. This momentum isn’t just about size, it’s about utility. With Pendle, reinsurance yield becomes programmable, and with Morpho, it becomes capital-efficient collateral, broadening what users can do with reUSD across the stack.
Turning Reinsurance Yield into a Tradable Primitive
Pendle separates reUSD’s cash flows into fixed and variable components, creating two complementary instruments: PTreUSD (principal tokens) for fixed-income exposure and YTreUSD (yield tokens) for variable yield. This split gives users precision over risk and return.
Fixed-income participants can lock in predictable returns by buying PTreUSD, which redeems 1:1 for the underlying at or after maturity. Meanwhile, users who want to express a view on changing yields can hold or trade YTreUSD, taking directional exposure to the variable portion of reinsurance returns.
This design does more than segment risk. It makes reinsurance yield tradable and composable. PT and YT markets introduce price discovery around future yield, enable hedging, and unlock structured strategies that were previously inaccessible in traditional reinsurance.
Trade PTreUSD on Pendle now.
Enter Morpho, Capital Efficiency for reUSD Participants
’s next step is about doing more with the same dollar. Through a new integration with Morpho, Pendle users can now borrow USDC against PTreUSD collateral in isolated, permissionless markets, preserving their fixed-income exposure. What this unlocks in practice:
- Borrow without giving up your fixed yield. Users can retain the base cash flow profile while tapping USDC liquidity.
- Amplify with loops. A common approach is to borrow USDC, buy more PTreUSD, and repeat. This scales fixed-income exposure within risk parameters.
- Hedge or diversify. Borrowed USDC can be used to hedge YT exposure, diversify across uncorrelated assets, or deploy into adjacent DeFi strategies without liquidating PT positions.
- Isolated risk. Morpho’s isolated market architecture helps contain risk to each market, reducing cross-contagion and enabling more precise collateral management.
By turning PTreUSD into lendable collateral, Morpho adds a capital-efficiency layer to Pendle’s price-discovery layer. Together, they let users express sophisticated fixed-income views, manage duration and exposure, and recycle liquidity.
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Borrow USDC with PTreUSD on Morpho now.
Composability in Motion
Pendle introduces granular markets for fixed and variable reinsurance yield, letting users optimize for certainty or upside. Morpho then transforms the fixed-income side (PTreUSD) into a funding leg — borrowable, loopable, and redeployable.
For Re participants, the implications are clear: you can now hold reUSD more flexibly — stake for native yield, split into PT/YT to tailor exposure, or use PT as collateral in Morpho’s isolated markets.
Zooming out, this is a meaningful step toward making reinsurance capital a cornerstone of DeFi: stable, transparent, and productively composable. By integrating with protocols that prioritize sound market structure, Re is expanding the toolkit available to users who want reliable yield with onchain flexibility.
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 Pendle
Pendle is a permissionless yield-trading protocol that tokenizes and separates future yield from principal assets. By splitting yield-bearing tokens into Principal Tokens (PT) and Yield Tokens (YT), Pendle enables users to trade yield, lock in fixed rates, and execute sophisticated yield strategies. Learn more at pendle.finance.
About Morpho
Morpho is a decentralized lending protocol offering permissionless, non-custodial infrastructure for onchain loans. The protocol enables customizable lending markets with advanced features like Morpho Vaults and robust security audits. Morpho provides efficient lending infrastructure for institutions and DeFi users alike. Learn more at morpho.org.