Executive Summary
OnRe, the world's first fully licensed on-chain reinsurance company operating on Solana, has launched the OnRe Points program for its ONyc token, significantly increasing engagement within the Solana DeFi ecosystem amid speculation of a future token airdrop.
The Event in Detail
OnRe is a fully licensed on-chain reinsurance company on Solana, accepting digital assets as collateral. It is backed by investors including Ethena Labs, Solana Ventures, and RockawayX. Its smart contracts have been audited by Quantstamp.
Its flagship asset, ONyc, is a stable yielding token backed by reinsurance premiums and collateral interest. It is designed as Solana's premier collateral asset for capital efficiency across DeFi protocols. ONyc aims for a 16% base yield, uncorrelated to crypto market volatility, derived from reinsurance performance and returns from collateral assets. The initial collateral layer is sUSDe, integrated through a partnership with Ethena.
The OnRe Points program incentivizes meaningful participation in the ONyc ecosystem by rewarding capital efficiency. Points accrue daily based on how ONyc is utilized in DeFi protocols.
The program features multi-tiered rewards:
- Base Holding (1x multiplier): 1 point per ONyc per day for asset holders, providing baseline rewards while accessing real-world yield from reinsurance performance.
- Liquidity Provision (2x multiplier): Double rewards for providing ONyc liquidity on leading Solana DEXs including Kamino, Orca, and Raydium.
- Lending and Borrowing (3x multiplier): Triple rewards for supplying ONyc as collateral to lending protocols such as Kamino and Loopscale. Advanced users deploying looping strategies can receive multipliers that scale with leverage.
- Yield Trading (4x multiplier): Maximum rewards for providing liquidity for YT-ONyc (Yield Token ONyc) on platforms like Exponent.
Users must complete KYC (Know Your Customer) verification and deposit USDC to mint ONyc to participate. While an explicit token airdrop is unconfirmed, similar points programs in DeFi have historically served as precursors to token distributions, indicating potential future value for accumulated points.
Market Implications
The OnRe Points program has led to increased capital inflow and Total Value Locked (TVL) into OnRe and related Solana DeFi protocols. This initiative significantly boosts ONyc's utility and liquidity within the Solana ecosystem, reinforcing its position as a premier collateral asset.
The program encourages active engagement and capital deployment across various DeFi strategies, potentially decentralizing governance and driving broader adoption if a future token distribution materializes. OnRe's model validates the 'on-chain reinsurance' primitive, demonstrating a viable pathway for combining traditional financial services with blockchain technology and institutional-grade yield.
The integration of ONyc with a range of Solana DeFi protocols such as Kamino, Orca, Raydium DEXs, Loopscale, and Exponent enhances the interoperability and functional depth of the broader ecosystem, fostering a more robust environment for capital efficiency.
Dan Roberts, Co-Founder and CEO at OnRe, stated, > "OnRe was built on a simple principle: capital should work as efficiently as possible. ONyc is our foundation – a stable, yielding asset backed by reinsurance premiums and collateral interest. With OnRe Points, we're rewarding users who put that capital to work in ways that reinforce the entire ecosystem."
Market observers note that the emphasis on capital efficiency, rather than passive token farming, suggests a strategic approach to building a robust ecosystem and incentivizing active, value-adding participation.
Broader Context
OnRe operates under a robust regulatory framework, being the first reinsurer approved by the Bermuda Monetary Authority (BMA) under both the Digital Asset Business Act (DABA) (Class F) and the Insurance Act (IIGB) (Class IIGB). This compliance framework provides a blueprint for integrating traditional financial markets with digital assets, enhancing transparency and investor confidence.
The tokenization of the $750 billion global reinsurance market through ONyc represents a significant step in bridging real-world assets (RWAs) with the crypto economy, offering investors access to regulated, yield-generating assets that are uncorrelated to traditional financial markets. This expands the alternative capital sources available to the reinsurance market, traditionally limited to institutional players.
The success of points-based incentive systems in DeFi, often preceding token launches as seen with projects like Rabby Wallet, has established a clear precedent for user expectation regarding potential future token distributions. This trend reflects the evolving strategies for community building and decentralized governance in the Web3 space, aiming to reward early contributors and active participants.
ONyc's multi-source yield, derived from reinsurance underwriting and crypto-native yields like sUSDe, aims to provide consistent performance across various market cycles, aligning with the growing demand for stable, yield-generating assets in the digital asset landscape. It leverages stablecoins as productive collateral, funding RWAs and scaling with institutional demand.
source:[1] Potential OnRe Airdrop: How to be Eligible? (https://airdrops.io/onre/ ...)[2] Potential OnRe Airdrop » How to be eligible? (https://vertexaisearch.cloud.google.com/groun ...)[3] The ONyc Whitepaper - Introduction | OnRe (https://vertexaisearch.cloud.google.com/groun ...)
Edgen Crypto·Sep 22 2025, 18:51
