The reinsurance industry represents over $850 billion in global premiums annually. Historically, it was an illiquid investment accessible only to limited groups of investors.
OnRe has helped change that by building a regulated, blockchain-native reinsurance platform that brings real-world yield onchain.
As of January 2026, OnRe ranks 9th globally among RWA protocols by total value locked, with $92 million in TVL and over 50% month-over-month growth. Built natively on Solana from day one, OnRe enables stablecoin holders to earn base yields of 9-15% APY backed by real-world reinsurance underwriting and collateral returns.
This guide breaks down everything you need to know about OnRe in 2026: how it works, why it matters, how to participate, and what makes it different from every other yield opportunity in DeFi.
What Is OnRe?
OnRe is a Bermuda-licensed, collateralized reinsurer and onchain asset manager operating under a dual regulatory framework.
As the first reinsurer licensed in both insurance and digital assets, OnRe holds both an Innovative Insurer General Business (IIGB) license under Bermuda’s Insurance Act and a Class F Digital Asset Business Act (DABA) license.
This unique regulatory position allows OnRe to connect the $800B global P&C reinsurance market with $250B of alternative capital. Rather than building another DeFi protocol that generates yield through emissions or liquidity mining, OnRe connects real-world insurance risk with global onchain capital.
The Core Product: ONyc
ONyc is OnRe's tokenized reinsurance vehicle: an accumulating yield-bearing institutional dollar asset representing proportional ownership in OnRe’s regulated segregated reinsurance account.
Each ONyc token reflects a share of real reinsurance performance. Returns are generated from underwriting premiums and collateral asset yield, not from token emissions, incentives, or speculative trading.
Unlike traditional stablecoins such as USDC or USDT, ONyc is not pegged to exactly $1.00. Instead, its value gradually appreciates over time as yield accrues, similar to how a money market fund share increases in value. This creates the distinctive upward-sloping chart that has become ONyc's signature.
How OnRe Generates Yield
OnRe generates returns through two distinct and complementary sources:
1. Reinsurance Underwriting Activity
OnRe reinsures licensed insurance companies in specialty and property lines. When a primary insurer wants to offload risk from major events like hurricanes, earthquakes, or agricultural losses, they purchase reinsurance from companies like OnRe.
Premiums are paid upfront, fully reserved according to actuarial standards, and recognized as income over the coverage period. Each deal is priced based on expected loss ratios, operational costs, and required return on capital. OnRe focuses on carefully selected risks where the premium adequately compensates for the exposure.
This underwriting activity typically generates 8-10% annual returns when properly managed and diversified across risk types and geographies.
2. Collateral Yield
ONyc is backed by a diversified pool of yield-bearing stablecoins and low-risk assets, including tokenized treasuries. About 20% of OnRe's AUM is held in a dedicated liquidity layer that acts as a buffer to absorb market volatility, facilitate redemptions, and protect against claim fluctuations.
These underlying assets generate their own yield, which is passed through to ONyc holders. During periods of higher funding rates or treasury yields, this collateral component can significantly boost overall returns.
Combined, these two yield sources produce a blended annual base yield, currently just over 9% APY.
This dual-source structure means ONyc performs well across market conditions: resilient reinsurance yields provide a floor during bear markets, while collateral yields can spike higher during bull markets.
The Segregated Account Structure
OnRe operates as a Segregated Account Company under Bermuda law. Each reinsurance pool runs within its own legally distinct account, ring-fenced so that capital in one account cannot be cross-pledged or exposed to losses from another.
This structure has been used for decades in traditional reinsurance and now underpins OnRe's transparent, tokenized system. For ONyc holders, this means your capital is protected within the ONyc Segregated Account and isolated from other business lines or future products OnRe may launch.
Segregation provides both legal protection and operational clarity. Each account maintains its own reserves, capital requirements, and performance metrics, all of which can be independently verified.
Key Partnerships and Integrations
Apex Group Verification
In January 2026, OnRe appointed Apex Group, a global financial services provider supporting asset managers and financial institutions, as ONyc's independent attestation provider.
Apex conducts regular, independent attestations of ONyc's net asset value and treasury balances across both traditional financial accounts and onchain infrastructure. Apex publishes monthly attestation reports for ONyc holders and stakeholders, providing third-party confirmation that reported NAV, treasury balances, and portfolio positions match ONyc's underlying reinsurance exposure.
This independent verification is essential for institutional adoption. It creates a clear separation between capital deployment (what OnRe does) and verification (what Apex does), holding ONyc to the same accountability standards investors expect from established financial products.
--> Read the attestation reports
DeFi Integrations
OnRe is integrated across Solana's leading DeFi protocols:
Kamino Finance: ONyc can be used as collateral for borrowing, enabling leverage strategies and capital-efficient deployment. Users can deposit ONyc, borrow stablecoins against it, and redeploy those funds into additional ONyc positions or other yield opportunities.
Orca: A deep liquidity pool with approximately $6 million provides secondary market depth for ONyc. Users can buy ONyc directly from the pool without KYC and swap ONyc tokens for USDC or other assets instantly.
Raydium: A core Solana DEX providing secondary liquidity for ONyc through deep AMM pools and order-book–enhanced execution. Users can swap ONyc, provide liquidity, and earn yield.
Loopscale: Specialized looping strategies allow users to leverage ONyc positions with up to 20%+ APY through automated borrow-deposit cycles.
Carrot: Boost strategies enable enhanced yields on ONyc positions through structured vault products.
Exponent: Yield trading markets allow users to tokenize and trade expected ONyc returns, expressing views on implied versus realized APY.
RateX: Leveraged yield trading markets allow users to take directional positions on ONyc’s future yield by tokenizing and trading expected returns, enabling hedging, speculation, and capital-efficient yield strategies.
These integrations transform ONyc from a passive yield instrument into active DeFi infrastructure. Capital can move freely across protocols, be used as collateral in multiple venues, and participate in sophisticated strategies while continuing to earn base reinsurance yields.
Understanding Looping with ONyc
Looping has emerged as one of the most popular strategies for ONyc holders. At a high level, looping means using a deposited position as collateral to borrow, then redeploying the borrowed funds into the same yield strategy. Repeat the cycle and you can build a larger yield-bearing position than your starting capital would normally allow.
Here's how it works with ONyc:
- Deposit ONyc into a lending protocol like Kamino as collateral
- Borrow USDC or other stablecoins against your ONyc position
- Use the borrowed stablecoins to purchase more ONyc
- Deposit the new ONyc as additional collateral
- Repeat the process to increase leverage
Because ONyc's value is relatively stable (it's backed by diversified stablecoins and appreciates gradually), the liquidation risk is significantly lower than looping with volatile crypto assets. During periods when ONyc yields exceed borrowing costs, looping creates positive arbitrage that amplifies returns.
For months in 2025, looping strategies on platforms like Loopscale achieved over 30% APY. Even as of January 2026, looped positions still generate over 20% APY, plus additional rewards from OnRe's points program.
The key advantages of looping ONyc versus other assets:
- Stable collateral: ONyc's multi-stablecoin backing makes depegs far less likely
- Low liquidation risk: Gradual appreciation means price movements are predictable
- Yield arbitrage: When ONyc yield exceeds borrow costs, loops are profitable
- Capital efficiency: Increase exposure without adding new funds
The OnRe Points Program
OnRe operates a points program that rewards users based on the depth of their participation across the ecosystem. Points are expected to convert into future token rewards or other benefits.
How to Earn Points
Base Holding (up to 1x multiplier): Simply holding ONyc generates 1 point per ONyc per day. This baseline rewards long-term holders regardless of DeFi activity.
Liquidity Provision (up to 2x multiplier): Contributing to ONyc's main token pairs on Orca, Raydium, or Kamino earns double points plus trading fees. Active liquidity provision supports healthier markets and unlocks additional rewards.
Yield Trading (up to 5x multiplier): The highest engagement tier rewards users who participate in structured yield markets on platforms like Exponent, where ONyc's future yields can be tokenized and traded.
Lending and Borrowing (up to 6x multiplier): Supplying ONyc as collateral on lending protocols or engaging in looping strategies earns triple points. Higher leverage results in proportionally higher point accumulation.
The program is designed to reward meaningful capital deployment that strengthens ONyc's utility, liquidity, and ecosystem integrations. Points scale with both balance and activity, making DeFi participation significantly more profitable than passive holding.
Please Note: Multipliers fluctuate based on current incentive programs being run
Why OnRe Performs Across Market Cycles
One of OnRe's most compelling characteristics is its resilience across different market environments. This stems from the uncorrelated nature of reinsurance returns.
Bear Market Performance
During crypto bear markets, most DeFi yields collapse. Liquidity mining incentives dry up, trading volumes decline, and leverage-based strategies become unprofitable or dangerous.
OnRe's reinsurance yields remain stable because they're driven by real-world insurance premiums, not crypto market dynamics. Insurance companies need reinsurance protection regardless of whether Bitcoin is at $20,000 or $60,000. Claims are governed by contracts and actuarial models, not market sentiment.
This makes ONyc particularly valuable during downturns. When speculative yields evaporate, ONyc continues delivering 9-15% APY backed by contractual premium income. It becomes one of the highest-quality yield sources available in DeFi during bear markets.
Bull Market Performance
During bull markets, ONyc benefits from multiple tailwinds. Collateral yields increase as funding rates and treasury yields rise. DeFi integration opportunities expand as protocols launch new products. Looping becomes more attractive as the spread between ONyc yield and borrowing costs widens.
Additionally, bull markets bring increased capital into DeFi, creating more demand for high-quality collateral assets. As one of the few yield-bearing tokens with real-world cash flow backing, ONyc attracts sophisticated capital seeking productive deployment.
In looking at the bear market x bull market larger picture, it’s clear that ONyc is one of the best available assets for cross-market-cycle returns. In simple terms, it’s a strong bear market asset for earning returns while other assets struggle, and it’s a performative asset to put up as collateral to enhance returns during a bull market.
This cross-cycle performance profile is unique in DeFi.
The Shift to Collateral-Grade Assets
As DeFi matures, the market is shifting from yield chasing to building with collateral-grade assets. This transition represents a fundamental evolution in how onchain capital behaves.
Early DeFi was dominated by manufactured yield. Returns often came from incentives, emissions, or volatility, and capital rotated rapidly between opportunities without durable stickiness. Yield aggregators, algorithmic systems, and emission-based rewards reflected the same dynamic: leverage amplified upside but also magnified fragility.
The defining question now is whether an asset can withstand real utilization at scale. Can it be posted as collateral, borrowed against, redeployed across protocols, and unwound efficiently without destabilizing the system? This is the practical test of whether yield is sustainable and whether an asset can serve as market infrastructure rather than a transient trade.
Yield-bearing real-world assets like ONyc represent a meaningful step change. Unlike emission-driven products, their yield does not decay as adoption increases. Unlike volatile crypto-native assets, their price behavior is anchored to real-world economics rather than reflexive market dynamics. Most importantly, their returns are generated independently of onchain leverage itself.
This distinction is critical. Assets that generate yield primarily because they are levered tend to compress or fail as leverage scales. Assets that generate yield before they are levered can support reuse more safely because leverage becomes an overlay rather than the source of returns.
ONyc increasingly functions as collateral and financing infrastructure across Solana DeFi. Rather than sitting idle in wallets, it is being deployed across lending markets, looping strategies, structured vaults, and liquid secondary venues. The market is treating it as working capital, not just a passive savings instrument.
How to Get Started with OnRe
Here’s how to get started earning yield from OnRe:
1. Purchase ONyc: The easiest way is to buy ONyc directly from the OnRe website, decentralized exchanges like Orca or Raydium using USDC or other stablecoins. No KYC is required for secondary market purchases.
2. Hold for Yield: Simply holding ONyc in your wallet earns the base yield of approximately 9-15% APY. The token automatically appreciates in value as yields accrue. You also earn OnRe points at a 1x multiplier.
3. Provide Liquidity: For higher returns, provide liquidity to ONyc pairs on Orca, Raydium, or Kamino. This earns trading fees plus a 2x points multiplier.
4. Use as Collateral: Deposit ONyc into lending protocols like Kamino to borrow against it. This enables capital-efficient strategies and earns a 3x points multiplier.
5. Loop for Leverage: For sophisticated users comfortable with leverage, looping strategies on Loopscale or Kamino can amplify returns to 20%+ APY while earning enhanced points.
6. Participate in Yield Markets: Trade ONyc's future yields on platforms like Exponent for the highest 4x points multiplier.
The appropriate strategy depends on your risk tolerance, capital efficiency goals, and DeFi sophistication. Conservative investors might simply hold ONyc for passive yield, while active traders might engage in looping or yield trading strategies.
What Makes OnRe Different
The RWA sector is crowded with tokenized treasuries, credit funds, and various yield products. What sets OnRe apart?
Real Uncorrelated Yield: Unlike treasuries or credit products that remain correlated to traditional financial markets, reinsurance returns are driven by completely independent factors. Insurance premiums and claims follow weather patterns, actuarial models, and contractual terms, not economic cycles.
Regulatory Clarity: OnRe operates under explicit regulatory approval in Bermuda for both reinsurance operations and digital asset handling. This isn't a protocol claiming to be decentralized to avoid regulation; it's a licensed, compliant reinsurance company bringing a traditional business model onchain.
Transparent Performance: OnRe publishes regular attestations from Apex Group, independent verification of NAV and treasury holdings, and clear reporting on underwriting performance. The transparency level exceeds most RWA products and matches or exceeds traditional financial products.
Cross-Cycle Design: The dual yield structure (reinsurance + collateral) creates a product that performs well in both bear and bull markets, rather than optimizing for only one environment.
Scale and Growth: Ranking 9th globally among RWA protocols with over 50% month-over-month growth demonstrates real market adoption and capital confidence.
The Future of OnRe
Looking ahead through 2026 and beyond, OnRe is positioned at the intersection of several powerful trends:
Growing Climate Risk: Climate-related losses continue to rise, particularly in agriculture and emerging markets where traditional reinsurance capacity is constrained. This creates expanding demand for faster, more flexible risk transfer exactly where OnRe excels.
RWA Maturation: Real-world assets are becoming DeFi infrastructure rather than experimental products. As more capital flows into risk-managed funds and vault structures, yield-bearing assets with real cash flows become essential building blocks.
Regulatory Normalization: Progress on regulatory frameworks, particularly around asset classification and stablecoin rules, makes compliant products like ONyc easier to distribute and scale.
Stablecoin Growth: As stablecoins become the financial plumbing for global settlement and treasury management, demand grows for productive deployment options. ONyc offers institutional-grade yield for stablecoin holders.
Capital Market Evolution: Traditional reinsurance markets remain operationally complex and inefficient. As capital flows from internet-native markets and technology companies partnering with onchain reinsurers, firms with superior technology and operational efficiency pull ahead.
FAQs
What is OnRe?
OnRe is a Bermuda-licensed collateralized reinsurer and onchain asset manager that brings the $850 billion global reinsurance market onchain. It operates under dual regulatory approval for both insurance operations and digital asset handling, making it the only reinsurer approved to accept digital assets as collateral. OnRe's flagship product, ONyc, enables stablecoin holders to earn approximately base yields of 9-15% APY backed by real-world reinsurance underwriting.
How does ONyc generate yield?
ONyc generates returns from two sources: reinsurance underwriting activity (typically 8-10% APY from insurance premiums) and collateral yield (returns from the underlying basket of yield-bearing stablecoins and tokenized treasuries). Combined, these sources produce base yields around 9-15% APY, though this varies based on underwriting performance and market conditions.
Is ONyc a stablecoin?
ONyc is a yield-bearing dollar token, not a traditional stablecoin. Unlike USDC or USDT which maintain a fixed $1.00 peg, ONyc's value gradually appreciates over time as yield accrues. Think of it more like a money market fund share that increases in value, rather than a pegged stablecoin.
What are the main risks of investing in ONyc?
The primary risks include reinsurance underwriting risk (if claims exceed expectations), smart contract risk (potential vulnerabilities in blockchain infrastructure), regulatory risk (changes in applicable laws), and liquidity risk (potential difficulty selling during extreme market stress). OnRe manages these risks through diversification, multiple audits, proactive compliance, and maintaining substantial liquidity reserves.
How is OnRe regulated?
OnRe operates under Bermuda's dual regulatory framework with an Innovative Insurer General Business license under the Insurance Act and a Class F license under the Digital Asset Business Act. This regulatory structure is overseen by the Bermuda Monetary Authority and provides explicit approval for OnRe's hybrid business model.
Can I use ONyc in DeFi?
Yes. ONyc is integrated across Solana's leading DeFi protocols including Kamino (lending and borrowing), Orca (liquidity provision), Loopscale (leverage strategies), Carrot (boost vaults), and Exponent (yield trading). It functions as active collateral that can be deployed in sophisticated strategies while continuing to earn base yield.
What is looping and how does it work with ONyc?
Looping is a leverage strategy where you deposit ONyc as collateral, borrow stablecoins against it, use those stablecoins to buy more ONyc, and repeat the cycle. Because ONyc is backed by stable assets and appreciates gradually, looping carries lower liquidation risk than volatile crypto assets. Current looped strategies achieve 20%+ APY.
How do OnRe Points work?
OnRe's points program rewards users based on their level of DeFi participation. Basic holding earns 1x points (1 point per ONyc per day), liquidity provision earns 2x, lending/borrowing earns 3x, and yield trading earns 4x. Points are expected to convert into future token rewards or other benefits.
How does ONyc compare to other RWA yield products?
ONyc offers truly uncorrelated returns since reinsurance performance is independent of financial markets, unlike tokenized treasuries or credit funds. It provides deeper DeFi composability than most RWA products, operates under explicit regulatory approval, and includes independent third-party verification from Apex Group. The cross-cycle performance profile (stable in bear markets, enhanced in bull markets) is unique in the RWA space.
Where can I buy ONyc?
ONyc can be purchased on directly on the OnRe website, as well as decentralized exchanges including Orca and Raydium using USDC or other stablecoins. No KYC is required for secondary market purchases. You can also access ONyc through integrated protocols like Kamino or participate in liquidity pools.
What is the minimum investment in OnRe?
There is no minimum investment for purchasing ONyc on secondary markets. You can buy any amount through DEXs like Orca or Raydium. The flexibility of tokenized access removes the high minimums typically required for traditional reinsurance investments.
How liquid is ONyc?
ONyc maintains approximately $6 million in immediate liquidity on Orca, with additional liquidity across Raydium and Kamino. OnRe also maintains a dedicated liquidity layer to support secondary market depth. While liquidity can tighten during extreme market stress, ONyc has historically maintained its NAV well even during major crypto market drawdowns.
