What is OnRe?
OnRe Finance is the world's first fully licensed, regulated on-chain reinsurance company. Built on the Solana blockchain, it connects decentralized finance (DeFi) capital directly to the global $750 billion property and casualty (P&C) reinsurance market. The platform allows institutional and crypto-native investors to act as capital providers for real-world insurance risk. In return, investors earn steady yields derived from insurance premiums.
OnRe gives individual traders and investors in eligible regions permissionless access to yield opportunities, with no onboarding requirements. Participants may also earn rewards and points based on their financial involvement in the protocol. For institutions, OnRe provides KYC/KYB-compliant access, regulatory support, and dedicated client services.
Understanding Reinsurance
Reinsurance allows insurance companies to transfer part of their exposure to another company (the reinsurer) in exchange for a share of the premiums.
This arrangement helps insurers:
- Protect their balance sheets
- Manage large or unexpected losses
- Increase underwriting capacity
- Offer more coverage
- Stabilize financial performance
What Is ONyc?
ONyc is an onchain yield-bearing asset backed by a regulated and legally protected reinsurance account in Bermuda. Its value changes with premiums, collateral income, and claims. Unlike a stablecoin or debt product, ONyc generates returns from real-world insurance underwriting.
Once minted, ONyc is transferable and composable across Solana DeFi. Depending on available integrations, holders may use it in:
- Liquidity pools
- Lending markets
- Structured products
- Trading venues
- Collateralized strategies
This gives users access to an asset backed by real-world insurance activity without removing its onchain utility.
How does ONyc Generate Yield?
ONyc combines two primary sources for yield:
- Reinsurance Premiums: OnRe earns contractual premiums for accepting clearly defined insurance risks. Performance depends on underwriting quality, portfolio construction, and claims rather than crypto prices or market speculation.
- Collateral Returns: The collateral supporting reinsurance contracts can also generate returns. This creates another source of income in addition to underwriting premiums.
Together, these components produce a return profile grounded in real economic activity. However, ONyc’s NAV can decrease if underwriting losses and expenses exceed the income generated.
How does ONyc Work?
The ONyc process can be summarized in five steps:
- Eligible users deposit USDC or USDG.
- ONyc is minted through OnRe’s smart contracts.
- Capital is allocated to regulated reinsurance programs.
- Premium and collateral performance is reflected in ONyc’s NAV.
- Holders can transfer, trade, redeem, or use ONyc across supported DeFi applications.
There is no ONyc minting fee, although users must pay Solana network fees.
Depositing on OnRe
To deposit on OnRe is to mint ONyc. ONyc can currently be minted with USDC or USDG. Access may follow open or institutional routes depending on the user’s location, status, and applicable verification requirements.
DeFi Strategies on OnRe
This section explores DeFi opportunities available through OnRe, enabling users to maximize the utility and earning potential of their ONyc holdings.
Lending and Borrowing
Users can lend supported assets to earn interest or use ONyc as collateral to borrow liquidity without selling it. Borrowing is overcollateralized and subject to each protocol’s interest rates, loan-to-value limits, and liquidation thresholds. This improves capital efficiency but introduces lending-protocol and liquidation risks.
Liquidity Provision
ONyc holders can supply assets to liquidity pools and earn ONyc’s underlying yield, trading fees, and potentially additional OnRe Points. Liquidity providers support more efficient trading and help ONyc remain close to its NAV. Risks may include impermanent loss, price divergence, and smart-contract vulnerabilities.
Transparency Dashboard
OnRe’s Transparency Dashboard provides insight into how capital is deployed and where returns originate. Rather than presenting only the APY, it separates base collateral income from underwriting performance.
Users can review information such as deployed and liquid capital, yield distributed and premiums earned, portfolio composition and reinsurance type. Individual insurance counterparties may remain confidential, but their portfolio’s economic and risk characteristics are presented in aggregate.
Portfolio
The Portfolio page lets users track their OnRe Points, monitor current positions, and review their onchain activity in one place.
What are Some Risks to Consider?
ONyc offers a different source of yield, but it is not risk-free. Important considerations include:
- Insurance claims and underwriting losses
- Smart-contract vulnerabilities
- Stablecoin and counterparty risk
- Concentration or portfolio-construction risk
Investors should evaluate the portfolio, liquidity position, contract terms, and transparency data rather than focusing only on headline yield.
Conclusion
OnRe uses blockchain infrastructure to make regulated reinsurance exposure more accessible, transparent, and useful across DeFi. Through ONyc, eligible participants can access returns generated by reinsurance premiums and collateral assets in a transferable Solana token.
