Reassurance Protocol
Decentralized reinsurance layer for XRPL lending markets. A structured loss waterfall absorbs broker defaults before depositor principal is touched, built on XLS-65, XLS-66, and XLS-33.
Project Information
At a Glance
Decentralized reinsurance layer for XRPL lending markets. A structured loss waterfall absorbs broker defaults before depositor principal is touched, built on XLS-65, XLS-66, and XLS-33.
Description
Reassurance Protocol is a decentralized reinsurance layer for XRPL lending markets.
When defaults exceed a broker's individual First Loss Capital buffer, the Reassurance Vault absorbs residual losses through a structured waterfall: Degen tranche first, then Staker, then Institutional investors. Depositor principal is the absolute last line of exposure.
Depositors get a shield between their capital and loan defaults. Brokers deposit a small amount and unlock up to 5x in coverage capacity, allowing them to underwrite more loans without proportional balance sheet risk. Tranche investors choose their own risk and return profile, earn yield from premiums, and can exit via the XRPL DEX at any time.
The live demo simulates a systemic climate shock defaulting 120,000 RUSD across three brokers, with the waterfall absorbing 59% of the loss before it reaches LPs.
Technical Details
Reassurance Protocol is built on Next.js 15 with React 19, Tailwind CSS 4, and TypeScript in strict mode. Blockchain interactions use xrpl.js 4.6.0 against the XRPL Standard Devnet running rippled 3.1.2.
The protocol relies entirely on three native XRPL primitives: XLS-65 Vaults for the Reassurance Vault and depositor pools, XLS-66 Lending for loan origination and First Loss Capital enforcement, and XLS-33 Multi-Purpose Tokens for the three risk tranches (D-MPT, S-MPT, I-MPT).
The setup script deploys 13 funded wallets, issues a test stablecoin (RUSD), deploys two vaults, mints five MPTs, registers three loan brokers, and originates seven active loans. Every transaction produces a verifiable hash on the XRPL Devnet Explorer.
The app is deployed on Vercel and detects devnet resets automatically, prompting redeployment from the browser.
Team
0Hackathon
Stablecoins & Payments Hackathon
Duration
Mar 21, 8:00 AM - Mar 22, 4:00 PM UTC