On Solana, we have countless ways to earn yield on our stablecoins, but the question always remains: what are the hidden risks? In this deep dive, we’re going into OnRe and its $ONyc token to discover how to capture attractive, real-world yields with the battle-tested security of the reinsurance market.

To understand OnRe, we first need to understand the reinsurance market and how OnRe translates real-world premiums into crypto yields.

In simple terms, reinsurance is "insurance for insurance companies." When a primary insurer takes on too much risk, they pass a portion of it to a reinsurer like OnRe. In exchange, the reinsurer receives a "premium", a cash payment that acts as a consistent, real-world revenue stream. Because these premiums are paid regardless of what's happening in the crypto market, they provide a unique, uncorrelated source of yield.

OnRe is a fully licensed, collateralized reinsurer and onchain asset manager that connects alternative capital with the global property and casualty (P&C) reinsurance market. Today, this industry represents over $800B in annual premiums.

Until OnRe, the yields generated by reinsurance premiums were virtually non-existent in DeFi. This specific asset class, and its exposure to global risk markets, was a "closed club," strictly reserved for massive institutions, hedge funds, and global reinsurers.

OnRe changes the game in two ways:

• Retail Empowerment: It opens the door for any DeFi user to tap into a revenue stream that was previously locked behind million-dollar minimums and complex legal hurdles.

• Uncorrelated Yield: You can diversify your portfolio with a yield that doesn't care if the crypto market is up or down. It’s based on real-world insurance contracts, providing more stable returns during crypto volatility.

By turning these premiums into an onchain asset, OnRe isn't just adding another stablecoin to the ecosystem, it’s importing a multi-billion dollar industry and providing this access to DeFi.

OnRe isn't just "another crypto project", it’s backed by a team with deep, verifiable roots in the traditional reinsurance industry.

On their own website, they showcase their results between 2013 and 2020, where they secured a $230M profit and an impressive 66% annual return. This level of professional experience in risk management is what separates OnRe from your average DeFi protocol, they've been cooking these returns in the real world long before bringing them on-chain.

It is an on-chain yield-bearing asset representing a proportional stake in a regulated, segregated account dedicated to underwriting short-duration insurance and reinsurance contracts. Unlike speculative tokens, $ONyc functions as an appreciating asset backed by sustainable real-world cash flows, completely decoupled from crypto-native volatility.

To understand how this value is captured and distributed on-chain, we need to dive into the underlying mechanics of the protocol.

The $ONyc token operates on a fundamentally different logic than most DeFi assets. It does not rely on staking rewards, funding-rate dynamics, leverage, liquidity incentives, or delta-neutral strategies. Unlike products dependent on market cycles, $ONyc is not a stablecoin, nor is it corporate credit or a tokenized hedge fund. Instead, its returns are purely driven by underwriting risk through a regulated structure and a proven actuarial process that has governed reinsurance markets for decades.

To understand where the $ONyc yield originates, we must look at how the protocol separates its income sources. As previously mentioned, a significant portion of the returns comes from reinsurance contracts, but there is also a "Base Yield" component designed to provide underlying stability.

Base Yield: This foundational layer is composed of various stable yield sources, including yield-bearing stablecoins from established crypto projects and US Short-Term T-Bills.

Each of these assets provides varying yields, working together to maintain overall stability and offer a broader, more diversified exposure to high-quality yield sources.

Currently, the majority of the Base Yield is allocated to US Short-Term T-Bills (29.1%), followed by USDG (20.5%), which together represent nearly 50% of $ONyc's entire stability basket.

Underwriting Returns: A significant portion of $ONyc’s performance is fueled by the reinsurance market. When insurance companies offload risk to a reinsurer, a fraction of the premiums follows that risk. These cash flows are strictly contractual and predictable, rooted in decades of established actuarial practices. This means the returns are a direct reflection of real-world insurance activity rather than speculative crypto market movements.

Reinsurance premiums have demonstrated remarkable consistency over the last several decades. Their performance is dictated by loss experience, strategic portfolio construction, and disciplined risk assessment, not by equity market cycles or crypto-native volatility. This provides $ONyc with a core revenue stream anchored in one of the most resilient and non-correlated sectors of global finance.

Through the Transparency tab, users can monitor all active contracts and the yield they are currently generating. This level of visibility ensures that investors are never in the dark, allowing for a clear view of how the portfolio is performing and the exact returns coming from each reinsurance operation.

Portfolio

The $ONyc portfolio is strategically built to ensure that yields are not dependent on a single event or region. Reinsurance contracts are categorized into different risk types, providing a balanced and resilient exposure:

• Risk Categories: The strategy covers everything from natural disasters (such as earthquakes) and financial losses in the travel sector to broader business lines, including Specialty, Industry Loss Warranty, and Excess of Loss.

• Global Footprint: The protocol operates across multiple regions worldwide, ensuring that risk is geographically dispersed.

• Yield Projections: For each of these contracts, OnRe provides the Projected Yield, giving investors a clear understanding of the return potential for every active operation.

The $ONyc token combines high-performance reinsurance yields with stable, foundational assets to create a fully transparent on-chain asset capable of being utilized across various DeFi strategies. This synergy is what defines the protocol’s stability and growth.

Key Strengths of this Integration:

• Direct RWA Exposure: It provides a strategic gateway to the RWA sector, currently one of the fastest-growing narratives in the institutional and crypto landscape.

• Protection Against Crypto Volatility: By anchoring returns to real-world insurance activities, $ONyc’s value is shielded from the extreme fluctuations of the crypto market.

• Optimized Balanced Returns: The engine delivers a sophisticated return profile that harmonizes the specialized risk of reinsurance underwriting with the reliable safety of the Base Yield.

RWAs have been growing across the entire crypto space, with a massive growth since the implementation of these assets in the crypto world.

Now with all eyes on RWAs and how they can actually deliver to the ecosystem, OnRe and Solana are benefiting from this huge inflow.

Over the last 2 months, Solana had an RWA inflow of $1.5B. That's almost the entire RWA market cap on the network ($1.7B excluding stablecoins).

This means 90% of all RWA capital on Solana entered in the last few months, showing a massive adoption from users.

Solana is getting real. Many people still fall for the fallacy that Solana is only a memecoin chain and that without them, it's nothing. This massive RWA inflow is here to change that mindset. Real assets, real yields, and real adoption.

One way to see the attention a project is getting is to look at its TVL and growth. Now, OnRe has over $100M AUM in $ONyc, and the growth followed the Solana inflows, hitting ATH after ATH.

One of the reasons why a huge part of Solana’s RWA inflows are going to OnRe is because:

• Market Resilience: It provides security regardless of the market moment (despite the inherent risks).

• Solid Base Yield: $ONyc offers a very competitive organic yield.

• DeFi Boosts: Multiple opportunities to leverage and boost returns within the ecosystem.

$ONyc doesn't only offer its base yield, but it is also a powerful building block designed to be integrated into several DeFi applications like Kamino, Loopscale, Carrot, and others. This composability is what transforms a simple RWA into a productive asset.

With the current DeFi Active TVL of $72.47M, we can see that approximately 70% of all available $ONyc is not sitting in wallets, it is actively moving through the DeFi ecosystem, earning higher yields and providing essential liquidity for these protocols.

This high level of activity proves that $ONyc is becoming a premier collateral choice on Solana. It is exactly what users want: high, sustainable yields, on the chain they love, using the assets and apps they trust.

Protocols: These are the protocols where $ONyc is active in DeFi, with the majority of the DeFi Active TVL inside Kamino, Loopscale, Carrot, and Perena vaults, as well as liquidity provision on Raydium, Orca, and Meteora.

All the strategies available for $ONyc and how they work, we will comment on in another topic.

Being a Top 5 player is not just about the rank, it’s about Market Share.

Currently, OnRe holds the 5th position on Solana, commanding 6.07% of the entire RWA market share on the network. In an ecosystem as competitive as Solana, capturing over 6% of the total value with one product is a massive statement.

We are seeing a significant and constant increase in wallets holding $ONyc, reaching a total of approximately 4,500 holders now, according to OnRe's data.

And in the last 3 months, OnRe grew from 3k holders to 4,500—a massive 50% increase in unique wallets holding $ONyc.

Looking at the base yield history that $ONyc offers, we can see some spikes where the yield dropped or jumped suddenly, but those were just 1-day events.

After OnRe gained more market traction and became more stabilized, the yield also stabilized, consistently staying around 9% to 13% since early December. This consistency shows that the protocol has matured and the real-world asset model is performing solidly.

Another crucial metric to watch is the NAV Performance, which shows the behavior of the token's real price. Since the protocol launch, with the yields being generated, it has continued in that classic straight ascending line, representing the stable yield generated by $ONyc.

There was no moment of Depeg, not even on 10/10/2025, when the crypto market experienced some of the highest volatility in its history. This stability confirms that the risk management and the quality of the collateral behind $ONyc are top-tier, ensuring that every token is fully backed by real, performing value.

In this topic we will cover every place where it is possible to use $ONyc in DeFi, including Yield Trading, looping, lending & borrowing, and LP'ing, being able to reach up to 35% APY in a new strategy combining Exponent with Kamino, so let's go.

When we use OnRe in DeFi, we get boosts in our APY, which is better than just holding $ONyc + OnRe points, which will likely count toward a potential OnRe airdrop, our next topic.

Within Yield Trading and platforms like Rate-X and Exponent, we find three different strategies with three different purposes.

Fixed-APY: For example, on Exponent, we can get a fixed APY of 11.46% until maturity, more than the base yield of 10.25%.

Exchange $ONyc for PT-ONyc to secure a fixed APY at maturity. 1 PT-ONyc trades below 1 US.D until maturity, as it sells all the underlying variable yield earned. At maturity, PT-ONyc is redeemed for 1 USD worth of $ONyc, realizing the fixed yield

And you get no points for using this strategy.

Yield Tokens: Within the Yield Tokens section, we can leverage our capital approximately 40x, but there are risks involved and I ran a simulation with 100 $ONyc deposited into this strategy.

Basically, the 100 $ONyc turn into 4247.77 YT-ONyc. Until May 13th, 2026, which is the maturity date, we earn the APY + the POINTS of 4247.77 USD deposited within $ONyc, ensuring we stack points for the potential airdrop in a leveraged way, while still being able to profit based on the underlying $ONyc APY.

Considering the realized $ONyc APY

• 8.30% = $79.85 in yield until maturity, PnL of -27.73% + Points

• 10.38% (Current) = $195.98 in yield, PnL of +77.19% + Points

• 15.57% = $342.05 in yield, PnL of +209.26% + Points

This is a risky strategy and requires deep research before allocating any investment, remember, always DYOR.

Liquidity Vaults: To boost your yield even further, you can provide liquidity to $ONyc/PT-ONyc pairs. Within these liquidity vaults, users earn both the base APY of the assets and the trading fees generated from swaps in the pool, effectively increasing the overall APY of your position.

Currently, depositing liquidity on Exponent offers 13.5% APY. It’s a great option for those who want to keep things safe while getting a nice boost on their returns.

In the looping section, we can leverage our capital by supplying an asset with a higher lending APY and borrowing one with a lower repay cost. This process is fully automated through the looping feature.

Within the Onre ecosystem, we have options like Loopscale, Kamino, Carrot, and Elemental Fund. However, I’ll focus on Kamino for this breakdown, as the strategy remains the same across all platforms, the only differences are the maximum APY achievable, market liquidity, and the available pairs.

In this example using 100 $ONyc, we can achieve an APY of nearly 16%.

Our liquidation risk occurs if the $ONyc NAV drops to 0.89. Essentially, a depeg in the token could trigger a liquidation of the entire position.

Onre also provides its own markets within Kamino and Loopscale. We can supply $ONyc, USDC, USDG, and USDS on Kamino, as well as USDC on Loopscale.

This is another way to participate in the Onre ecosystem, earning 3x points. You can either supply $ONyc itself or even USDC if you're not interested in holding the underlying asset.

This is a more advanced strategy, as your APY depends on your specific price range and how long the pair stays within that interval. We can provide liquidity for pairs like $ONyc/USDC, $ONyc/USDG, and $ONyc/JitoSOL.

Providing liquidity with stables offers more stability due to the peg of both assets, potentially generating solid returns from fees.

On the other hand, pools with JitoSOL offer a much more aggressive APY. However, you’re also dealing with Solana’s volatility, so the analysis required before entering such a position must be significantly deeper.

The main market risk for Onre is natural catastrophes. But why?

• Exposure Concentration: Reinsurers focus most of their exposure on rare, high-impact events.

• Single Event Impact: A single catastrophe can cause a considerable loss to the capital pool.

• Compound Impact: If multiple catastrophes happen in the same year, the impact is even greater.

• Predictability: The biggest issue is that catastrophes are unpredictable and are becoming more severe due to climate change.

Essentially, when you provide liquidity to Onre, you are backing these events. You collect the premiums, but you face this risk of nature.

Hurricane Katrina was one of the costliest events in history, causing over $160B in damages and a loss of more than $65B for the re/insurance market, according to the Swiss Re Institute.

An event of this scale would definitely affect Onre’s performance, as it is directly tied to this market.

But how did the team behave during a season of natural catastrophes? Let’s look back at 2017.

In 2017, Hurricanes Harvey, Irma, and Maria hit simultaneously, bringing nearly $90B in insured losses.

This massive wave of claims significantly impacted the results of major global reinsurers. It was a true "stress test" for the entire industry.

Even during this catastrophic season, the OnRe team’s results remained positive across their reinsurance contracts.

This proves their resilience and the depth of their contract analysis and performance tracking.

How?

• Underwriting Strategy: They likely avoided direct exposure in the specific regions hit by the hurricanes.

• Selection: They showed they can filter out bad risk and pick contracts that survive even when the broader market is taking a hit.

Onre uses a points system to reward early participants, and this is where you can maximize your future allocation/incentives.

In the Leaderboard tab, you can monitor your total points, current ranking, and a clear breakdown of your point sources, divided between specific DeFi protocols or simple wallet holdings. Currently, 11,182 wallets are participating in OnRe’s points program, showing steady growth in the ecosystem.

The system is designed to reward active participation, with 1 $ONyc = 1 point per day as the baseline. Depending on where you deploy your capital, you can significantly accelerate your points accumulation:

• Holding: 1x

• LP'ing: 2x

• Lending & Borrowing: 3x

• Yield Trading: 5x

• Looping: 6x

By moving from passive holding to more advanced strategies like Looping or Yield Trading, you can climb the leaderboard 5 to 6 times faster than a regular holder.

In their docs, they don't mention anything very clearly yet, but the team has guaranteed that point holders will receive some type of incentive tied to platform usage.

But possibly, we could have an airdrop for point holders who accumulate points throughout the entire campaign.

This bridge between the reinsurance market and the crypto market is a great move for a project like OnRe, with years of experience. For the user looking for attractive yield with non-crypto collateral to avoid volatility, $ONyc is a great asset to study.

At its core, $ONyc is not trying to “out-yield” DeFi with unsustainable incentives. It imports real underwriting premiums and combines them with a diversified Base Yield structure, creating a dual-engine model that balances performance and stability. The result is an appreciating, yield-bearing on-chain asset whose returns are fundamentally tied to insurance risk, not crypto volatility.

If you enjoyed this deep dive, follow me for more on-chain analysis and ecosystem insights:

• X: https://x.com/OnChainGio

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Disclaimer: NFA / DYOR. Documenting my personal journey and analysis of the crypto ecosystem.

On Solana, we have countless ways to earn yield on our stablecoins, but the question always remains: what are the hidden risks? In this deep dive, we’re going into OnRe and its $ONyc token to discover how to capture attractive, real-world yields with the battle-tested security of the reinsurance market.

To understand OnRe, we first need to understand the reinsurance market and how OnRe translates real-world premiums into crypto yields.

In simple terms, reinsurance is "insurance for insurance companies." When a primary insurer takes on too much risk, they pass a portion of it to a reinsurer like OnRe. In exchange, the reinsurer receives a "premium", a cash payment that acts as a consistent, real-world revenue stream. Because these premiums are paid regardless of what's happening in the crypto market, they provide a unique, uncorrelated source of yield.

OnRe is a fully licensed, collateralized reinsurer and onchain asset manager that connects alternative capital with the global property and casualty (P&C) reinsurance market. Today, this industry represents over $800B in annual premiums.

Until OnRe, the yields generated by reinsurance premiums were virtually non-existent in DeFi. This specific asset class, and its exposure to global risk markets, was a "closed club," strictly reserved for massive institutions, hedge funds, and global reinsurers.

OnRe changes the game in two ways:

• Retail Empowerment: It opens the door for any DeFi user to tap into a revenue stream that was previously locked behind million-dollar minimums and complex legal hurdles.

• Uncorrelated Yield: You can diversify your portfolio with a yield that doesn't care if the crypto market is up or down. It’s based on real-world insurance contracts, providing more stable returns during crypto volatility.

By turning these premiums into an onchain asset, OnRe isn't just adding another stablecoin to the ecosystem, it’s importing a multi-billion dollar industry and providing this access to DeFi.

OnRe isn't just "another crypto project", it’s backed by a team with deep, verifiable roots in the traditional reinsurance industry.

On their own website, they showcase their results between 2013 and 2020, where they secured a $230M profit and an impressive 66% annual return. This level of professional experience in risk management is what separates OnRe from your average DeFi protocol, they've been cooking these returns in the real world long before bringing them on-chain.

It is an on-chain yield-bearing asset representing a proportional stake in a regulated, segregated account dedicated to underwriting short-duration insurance and reinsurance contracts. Unlike speculative tokens, $ONyc functions as an appreciating asset backed by sustainable real-world cash flows, completely decoupled from crypto-native volatility.

To understand how this value is captured and distributed on-chain, we need to dive into the underlying mechanics of the protocol.

The $ONyc token operates on a fundamentally different logic than most DeFi assets. It does not rely on staking rewards, funding-rate dynamics, leverage, liquidity incentives, or delta-neutral strategies. Unlike products dependent on market cycles, $ONyc is not a stablecoin, nor is it corporate credit or a tokenized hedge fund. Instead, its returns are purely driven by underwriting risk through a regulated structure and a proven actuarial process that has governed reinsurance markets for decades.

To understand where the $ONyc yield originates, we must look at how the protocol separates its income sources. As previously mentioned, a significant portion of the returns comes from reinsurance contracts, but there is also a "Base Yield" component designed to provide underlying stability.

Base Yield: This foundational layer is composed of various stable yield sources, including yield-bearing stablecoins from established crypto projects and US Short-Term T-Bills.

Each of these assets provides varying yields, working together to maintain overall stability and offer a broader, more diversified exposure to high-quality yield sources.

Currently, the majority of the Base Yield is allocated to US Short-Term T-Bills (29.1%), followed by USDG (20.5%), which together represent nearly 50% of $ONyc's entire stability basket.

Underwriting Returns: A significant portion of $ONyc’s performance is fueled by the reinsurance market. When insurance companies offload risk to a reinsurer, a fraction of the premiums follows that risk. These cash flows are strictly contractual and predictable, rooted in decades of established actuarial practices. This means the returns are a direct reflection of real-world insurance activity rather than speculative crypto market movements.

Reinsurance premiums have demonstrated remarkable consistency over the last several decades. Their performance is dictated by loss experience, strategic portfolio construction, and disciplined risk assessment, not by equity market cycles or crypto-native volatility. This provides $ONyc with a core revenue stream anchored in one of the most resilient and non-correlated sectors of global finance.

Through the Transparency tab, users can monitor all active contracts and the yield they are currently generating. This level of visibility ensures that investors are never in the dark, allowing for a clear view of how the portfolio is performing and the exact returns coming from each reinsurance operation.

Portfolio

The $ONyc portfolio is strategically built to ensure that yields are not dependent on a single event or region. Reinsurance contracts are categorized into different risk types, providing a balanced and resilient exposure:

• Risk Categories: The strategy covers everything from natural disasters (such as earthquakes) and financial losses in the travel sector to broader business lines, including Specialty, Industry Loss Warranty, and Excess of Loss.

• Global Footprint: The protocol operates across multiple regions worldwide, ensuring that risk is geographically dispersed.

• Yield Projections: For each of these contracts, OnRe provides the Projected Yield, giving investors a clear understanding of the return potential for every active operation.

The $ONyc token combines high-performance reinsurance yields with stable, foundational assets to create a fully transparent on-chain asset capable of being utilized across various DeFi strategies. This synergy is what defines the protocol’s stability and growth.

Key Strengths of this Integration:

• Direct RWA Exposure: It provides a strategic gateway to the RWA sector, currently one of the fastest-growing narratives in the institutional and crypto landscape.

• Protection Against Crypto Volatility: By anchoring returns to real-world insurance activities, $ONyc’s value is shielded from the extreme fluctuations of the crypto market.

• Optimized Balanced Returns: The engine delivers a sophisticated return profile that harmonizes the specialized risk of reinsurance underwriting with the reliable safety of the Base Yield.

RWAs have been growing across the entire crypto space, with a massive growth since the implementation of these assets in the crypto world.

Now with all eyes on RWAs and how they can actually deliver to the ecosystem, OnRe and Solana are benefiting from this huge inflow.

Over the last 2 months, Solana had an RWA inflow of $1.5B. That's almost the entire RWA market cap on the network ($1.7B excluding stablecoins).

This means 90% of all RWA capital on Solana entered in the last few months, showing a massive adoption from users.

Solana is getting real. Many people still fall for the fallacy that Solana is only a memecoin chain and that without them, it's nothing. This massive RWA inflow is here to change that mindset. Real assets, real yields, and real adoption.

One way to see the attention a project is getting is to look at its TVL and growth. Now, OnRe has over $100M AUM in $ONyc, and the growth followed the Solana inflows, hitting ATH after ATH.

One of the reasons why a huge part of Solana’s RWA inflows are going to OnRe is because:

• Market Resilience: It provides security regardless of the market moment (despite the inherent risks).

• Solid Base Yield: $ONyc offers a very competitive organic yield.

• DeFi Boosts: Multiple opportunities to leverage and boost returns within the ecosystem.

$ONyc doesn't only offer its base yield, but it is also a powerful building block designed to be integrated into several DeFi applications like Kamino, Loopscale, Carrot, and others. This composability is what transforms a simple RWA into a productive asset.

With the current DeFi Active TVL of $72.47M, we can see that approximately 70% of all available $ONyc is not sitting in wallets, it is actively moving through the DeFi ecosystem, earning higher yields and providing essential liquidity for these protocols.

This high level of activity proves that $ONyc is becoming a premier collateral choice on Solana. It is exactly what users want: high, sustainable yields, on the chain they love, using the assets and apps they trust.

Protocols: These are the protocols where $ONyc is active in DeFi, with the majority of the DeFi Active TVL inside Kamino, Loopscale, Carrot, and Perena vaults, as well as liquidity provision on Raydium, Orca, and Meteora.

All the strategies available for $ONyc and how they work, we will comment on in another topic.

Being a Top 5 player is not just about the rank, it’s about Market Share.

Currently, OnRe holds the 5th position on Solana, commanding 6.07% of the entire RWA market share on the network. In an ecosystem as competitive as Solana, capturing over 6% of the total value with one product is a massive statement.

We are seeing a significant and constant increase in wallets holding $ONyc, reaching a total of approximately 4,500 holders now, according to OnRe's data.

And in the last 3 months, OnRe grew from 3k holders to 4,500—a massive 50% increase in unique wallets holding $ONyc.

Looking at the base yield history that $ONyc offers, we can see some spikes where the yield dropped or jumped suddenly, but those were just 1-day events.

After OnRe gained more market traction and became more stabilized, the yield also stabilized, consistently staying around 9% to 13% since early December. This consistency shows that the protocol has matured and the real-world asset model is performing solidly.

Another crucial metric to watch is the NAV Performance, which shows the behavior of the token's real price. Since the protocol launch, with the yields being generated, it has continued in that classic straight ascending line, representing the stable yield generated by $ONyc.

There was no moment of Depeg, not even on 10/10/2025, when the crypto market experienced some of the highest volatility in its history. This stability confirms that the risk management and the quality of the collateral behind $ONyc are top-tier, ensuring that every token is fully backed by real, performing value.

In this topic we will cover every place where it is possible to use $ONyc in DeFi, including Yield Trading, looping, lending & borrowing, and LP'ing, being able to reach up to 35% APY in a new strategy combining Exponent with Kamino, so let's go.

When we use OnRe in DeFi, we get boosts in our APY, which is better than just holding $ONyc + OnRe points, which will likely count toward a potential OnRe airdrop, our next topic.

Within Yield Trading and platforms like Rate-X and Exponent, we find three different strategies with three different purposes.

Fixed-APY: For example, on Exponent, we can get a fixed APY of 11.46% until maturity, more than the base yield of 10.25%.

Exchange $ONyc for PT-ONyc to secure a fixed APY at maturity. 1 PT-ONyc trades below 1 US.D until maturity, as it sells all the underlying variable yield earned. At maturity, PT-ONyc is redeemed for 1 USD worth of $ONyc, realizing the fixed yield

And you get no points for using this strategy.

Yield Tokens: Within the Yield Tokens section, we can leverage our capital approximately 40x, but there are risks involved and I ran a simulation with 100 $ONyc deposited into this strategy.

Basically, the 100 $ONyc turn into 4247.77 YT-ONyc. Until May 13th, 2026, which is the maturity date, we earn the APY + the POINTS of 4247.77 USD deposited within $ONyc, ensuring we stack points for the potential airdrop in a leveraged way, while still being able to profit based on the underlying $ONyc APY.

Considering the realized $ONyc APY

• 8.30% = $79.85 in yield until maturity, PnL of -27.73% + Points

• 10.38% (Current) = $195.98 in yield, PnL of +77.19% + Points

• 15.57% = $342.05 in yield, PnL of +209.26% + Points

This is a risky strategy and requires deep research before allocating any investment, remember, always DYOR.

Liquidity Vaults: To boost your yield even further, you can provide liquidity to $ONyc/PT-ONyc pairs. Within these liquidity vaults, users earn both the base APY of the assets and the trading fees generated from swaps in the pool, effectively increasing the overall APY of your position.

Currently, depositing liquidity on Exponent offers 13.5% APY. It’s a great option for those who want to keep things safe while getting a nice boost on their returns.

In the looping section, we can leverage our capital by supplying an asset with a higher lending APY and borrowing one with a lower repay cost. This process is fully automated through the looping feature.

Within the Onre ecosystem, we have options like Loopscale, Kamino, Carrot, and Elemental Fund. However, I’ll focus on Kamino for this breakdown, as the strategy remains the same across all platforms, the only differences are the maximum APY achievable, market liquidity, and the available pairs.

In this example using 100 $ONyc, we can achieve an APY of nearly 16%.

Our liquidation risk occurs if the $ONyc NAV drops to 0.89. Essentially, a depeg in the token could trigger a liquidation of the entire position.

Onre also provides its own markets within Kamino and Loopscale. We can supply $ONyc, USDC, USDG, and USDS on Kamino, as well as USDC on Loopscale.

This is another way to participate in the Onre ecosystem, earning 3x points. You can either supply $ONyc itself or even USDC if you're not interested in holding the underlying asset.

This is a more advanced strategy, as your APY depends on your specific price range and how long the pair stays within that interval. We can provide liquidity for pairs like $ONyc/USDC, $ONyc/USDG, and $ONyc/JitoSOL.

Providing liquidity with stables offers more stability due to the peg of both assets, potentially generating solid returns from fees.

On the other hand, pools with JitoSOL offer a much more aggressive APY. However, you’re also dealing with Solana’s volatility, so the analysis required before entering such a position must be significantly deeper.

The main market risk for Onre is natural catastrophes. But why?

• Exposure Concentration: Reinsurers focus most of their exposure on rare, high-impact events.

• Single Event Impact: A single catastrophe can cause a considerable loss to the capital pool.

• Compound Impact: If multiple catastrophes happen in the same year, the impact is even greater.

• Predictability: The biggest issue is that catastrophes are unpredictable and are becoming more severe due to climate change.

Essentially, when you provide liquidity to Onre, you are backing these events. You collect the premiums, but you face this risk of nature.

Hurricane Katrina was one of the costliest events in history, causing over $160B in damages and a loss of more than $65B for the re/insurance market, according to the Swiss Re Institute.

An event of this scale would definitely affect Onre’s performance, as it is directly tied to this market.

But how did the team behave during a season of natural catastrophes? Let’s look back at 2017.

In 2017, Hurricanes Harvey, Irma, and Maria hit simultaneously, bringing nearly $90B in insured losses.

This massive wave of claims significantly impacted the results of major global reinsurers. It was a true "stress test" for the entire industry.

Even during this catastrophic season, the OnRe team’s results remained positive across their reinsurance contracts.

This proves their resilience and the depth of their contract analysis and performance tracking.

How?

• Underwriting Strategy: They likely avoided direct exposure in the specific regions hit by the hurricanes.

• Selection: They showed they can filter out bad risk and pick contracts that survive even when the broader market is taking a hit.

Onre uses a points system to reward early participants, and this is where you can maximize your future allocation/incentives.

In the Leaderboard tab, you can monitor your total points, current ranking, and a clear breakdown of your point sources, divided between specific DeFi protocols or simple wallet holdings. Currently, 11,182 wallets are participating in OnRe’s points program, showing steady growth in the ecosystem.

The system is designed to reward active participation, with 1 $ONyc = 1 point per day as the baseline. Depending on where you deploy your capital, you can significantly accelerate your points accumulation:

• Holding: 1x

• LP'ing: 2x

• Lending & Borrowing: 3x

• Yield Trading: 5x

• Looping: 6x

By moving from passive holding to more advanced strategies like Looping or Yield Trading, you can climb the leaderboard 5 to 6 times faster than a regular holder.

In their docs, they don't mention anything very clearly yet, but the team has guaranteed that point holders will receive some type of incentive tied to platform usage.

But possibly, we could have an airdrop for point holders who accumulate points throughout the entire campaign.

This bridge between the reinsurance market and the crypto market is a great move for a project like OnRe, with years of experience. For the user looking for attractive yield with non-crypto collateral to avoid volatility, $ONyc is a great asset to study.

At its core, $ONyc is not trying to “out-yield” DeFi with unsustainable incentives. It imports real underwriting premiums and combines them with a diversified Base Yield structure, creating a dual-engine model that balances performance and stability. The result is an appreciating, yield-bearing on-chain asset whose returns are fundamentally tied to insurance risk, not crypto volatility.

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Disclaimer: NFA / DYOR. Documenting my personal journey and analysis of the crypto ecosystem.