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We invest in crypto projects and, out of a dedicated yield strategy, are an active liquidity provider across DeFi. This makes the venture calculus relatively straightforward for us: is it a product we’re eager to put capital into? As would-be customers, does the value proposition stir us? That generally comes down to whether it presents a compelling return profile or user experience that is materially superior to alternatives. OnRe perfectly fits the bill.
By taking a ‘real world asset’ in reinsurance and turning it into an on-chain structured product with a unique return profile, OnRe creates a novel financial product. It is truly “blockchain-native” - the combination of crypto capital formation, programmability, and capital efficiency doesn’t exist elsewhere.
The competition for on-chain capital is fierce, but this opportunity offers us and other LPs something special - cross-cycle returns via uncorrelated yield sources.
On the venture side, we see that selling point paving the way to the next $1bn+ DeFi protocol.
How it works
Stepping back, OnRe is a Bermuda-licensed reinsurance company that’s unique in having regulatory approval to accept digital assets as collateral in reinsurance pools. The first pool it’s launching with leverages Ethena’s yield-bearing stablecoin, sUSDe. Depositors’ sUSDe, purchasable via sleek interface, goes into a balanced real world reinsurance portfolio the team has long been in the business of underwriting.
Users earn the reinsurance return, as well as “collateral yield” returns associated with sUSDe and $ONRE token incentives. In this way, it’s a neat blockchain-native structured product with diversification: in a more bearish environment, the (~8-10%) reinsurance yield is stable; in bullish markets, as funding rates rise, the product can generate 30%+.
More active investors will be able to leverage the project’s integrations across Solana DeFi, starting with now-live Orca and Kamino partnerships that let you effectively borrow capital against an OnRe pool deposit receipt. These integrations and others ahead make reinsurance an agile on-chain portfolio building block.
With our venture hats on, we like big, bold ideas that make for enduring businesses. What made this DeFi opportunity all the more enticing is the impact it can have beyond the crypto space’s borders. Namely, the reinsurance industry is sorely in need of a digital lift and increased accessibility. Do you know how to get some reinsurance exposure?! Neither did we! OnRe can help the space take a leapfrog step forward. It’s not just slapping on lipstick; it offers a major makeover via real new functionality, via DeFi’s composability.
So what about the token?
OnRe’s protocol token is directly tied to a regulated, revenue-generating business, setting it apart from typical DeFi tokens that rely on emissions or abstract governance. Its value is linked to TVL, backed by real-world underwriting, and aligned with long-term platform growth. With the ability to capture upside from funding rates, composability, and on-chain collateral, OnRe can generate the same revenue from $10M in TVL as a $500M money market fund, showcasing its efficiency and scalability.
Capital deployment and token demand don’t just coexist—they compound. This model shows how two flywheels work in tandem to unlock sustainable value, liquidity, and long-term growth.
The new category creates yield that returns in a bear market and scales in a bull, powered by real-world premiums and on-chain composability. It’s a structured product in the purest sense: designed to offer downside protection and enhanced (versus traditional reinsurance) returns.
Why OnRe
Many hail real world asset prime time. We believe we’re on the cusp - but it’s not a fait accompli. Achieving a vibrant on-chain RWA economy depends on more than ‘copy and paste’ jobs - putting replicas of legacy instruments on-chain. Rather, it will be about products that let users do something not possible in traditional markets. Truly innovative products, that hone the original promise of blockchain technology for open data, automated transactions, and accelerated efficiency will usher off-chain capital onto DeFi.
That’s why we’re excited to back OnRe, a regulated, on-chain reinsurance platform that we believe represents a leap forward in DeFi maturity and capital efficiency.
OnRe has built something that the traditional financial system can’t: a compliant, on-chain reinsurance platform that turns the historically inaccessible $750bn reinsurance market into a programmable, composable asset class.
A Historically Inaccessible Market, Ripe to Come On-Chain
Reinsurance is one of the most consistently profitable segments of global finance. It supports the broader insurance industry by absorbing risk from primary carriers. In exchange, reinsurers earn predictable, premium-based returns.
Reinsurance returns are attractive because they’re based on event-driven risks like natural disasters, accidents, or mortality patterns, rather than tied to economic or market cycles. As a result, reinsurance portfolios tend to perform independently of traditional financial assets, offering a source of returns that is historically uncorrelated with equities, credit, or crypto markets.
Access to this yield has traditionally been limited to institutional reinsurers and the largest allocators. OnRe removes that barrier by letting regular users participate easily with a structure that meets regulatory requirements and integrates with crypto capital markets.
Looking Ahead
We’re supporting OnRe alongside Ethena Labs, Solana Ventures, and others who are excited about this as a DeFi primitive with the substance and capacity to scale into something meaningful. The rise of stablecoins and treasuries that hold billions of non-productive assets makes it fertile timing for new, sustainable on-chain yield sources. OnRe is perfectly-positioned to deliver on that demand–and possibly shakeup a $1Trn industry as it goes.
