eToken
ERC-20 tokens issued by Ensuro representing a capital provider's share of a reinsurance risk pool.
eTokens are ERC-20 tokens minted by the Ensuro protocol when a capital provider deposits USDC into a reinsurance risk pool. Each eToken represents a proportional claim on the pool's assets and entitlement to insurance premiums generated by the pool.
Unlike traditional reinsurance positions — which are bilateral contracts in private trusts — eTokens are liquid, transferable, and composable with other DeFi protocols. A holder can trade them, use them as DeFi collateral, or hold them to accumulate premium yield.
eToken value is 1:1 with USDC at inception and accrues yield over time as premiums are distributed. In a major loss event, eToken value decreases proportionally to the pool's loss, making them an honest representation of the underlying risk exposure.
Example usage
“Capital providers in Ensuro's crop insurance pool hold eTokens earning approximately 8–12% APY from premium income and idle-capital DeFi yield.”
Frequently asked questions
What is eToken?
ERC-20 tokens issued by Ensuro representing a capital provider's share of a reinsurance risk pool. eTokens are ERC-20 tokens minted by the Ensuro protocol when a capital provider deposits USDC into a reinsurance risk pool. Each eToken represents a proportional claim on the pool's assets and entitlement to insurance premiums generated by the pool.
How is eToken used in practice?
Capital providers in Ensuro's crop insurance pool hold eTokens earning approximately 8–12% APY from premium income and idle-capital DeFi yield.
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