Ethena offers up to 23 percent APY with reinsurance pools

Ethena (CRYPTO:ENA), a synthetic dollar protocol, has partnered with the decentralised reinsurance platform Re to provide users with an opportunity to earn up to 23% annual percentage yield (APY) by depositing stablecoins into reinsurance risk pools.

The collaboration enables users to lock Ethena’s USDe  (CRYPTO:USDE) and sUSDe stablecoins into Re’s Risk Pools, which are managed by qualified Cell Managers.

These pools generate yields from diversified reinsurance portfolios, marking a significant step in connecting crypto-native assets with traditional financial markets.

“This is the first time crypto-native assets like USDe are connected to the $1 trillion-plus reinsurance market — a massive source of non-correlated, premium-based yield,” Re stated.

Re’s platform tokenises insurance premiums and deploys capital into global reinsurance markets, which have traditionally been inaccessible to retail investors.

The integration is built on the Avalanche network, with Ethena’s USDe backed by crypto collateral such as staked Ethereum (CRYPTO:ETH) and Bitcoin (CRYPTO:BTC).

Re also announced that quarterly redemptions would be available, with plans to introduce early redemption options via Curve Finance in the near future.

Despite the high yield potential, the initiative carries risks including market volatility, insurance underwriting losses, and regulatory challenges.

Re emphasised the innovative nature of this approach, describing it as “the future of stablecoins — not just yield but impact."

This partnership aligns with Ethena’s broader roadmap for 2025, which focuses on expanding its ecosystem and integrating its synthetic dollar products into both decentralised and traditional financial systems.

By bridging decentralised finance (DeFi) with reinsurance markets, Ethena and Re aim to create a new avenue for generating returns while diversifying investment opportunities.

At the time of reporting, the Ethena (ENA) price was $0.2961.