Solana's Decentralized Finance (DeFi) space receives a new addition with the launch of ONyc on Kamino, offering tangible returns and collateral value in the real world.
OnRe's ONyc, a stablecoin-backed asset, is now live on Kamino, Solana's largest DeFi money market. This integration marks the first time reinsurance-backed yield is being used as onchain collateral in Solana DeFi.
ONyc represents exposure to reinsurance premium and stablecoin yields, producing a reported base yield (commonly quoted ~14–16%) that is uncorrelated to crypto market volatility. Kamino integrated ONyc as accepted collateral in its money-market, allowing users to supply ONyc to earn the underlying yield, or use it as collateral to borrow stablecoins and execute leveraged (looping) strategies on Solana.
The announcement received support from Nick Robnett at Paxos, on behalf of Global Dollar Network, who expressed support for ONyc's launch on Solana and Kamino. External incentive programs from USDG (Global Dollar Network) and Ethena were launched to support ONyc adoption, aiming to reduce borrowing costs and enhance yield opportunities for users who use ONyc as collateral.
ONyc's Net Asset Value (NAV) is delivered onchain via Chainlink's Onchain NAV/Data Streams, providing real-time, verifiable pricing needed for secure collateralization and composability across DeFi protocols. Users can earn the underlying ONyc yield while remaining fully onchain and can redeploy borrowed capital into other Solana strategies to amplify returns, subject to risk management and collateral limits on Kamino.
Because ONyc exposure is backed by reinsurance premium streams and stablecoin returns, it provides a source of yield that is intended to be less correlated with crypto markets, which may help diversify portfolio risk within Solana DeFi. Participants can also redeploy borrowed USDG to acquire additional ONyc or other assets, increasing exposure and unlocking higher returns.
It's important to note that redemption with OnRe may be limited to qualified investors and secondary market trading is independent of OnRe. Reported yields (14–16%) are from the press releases and partner commentary; prospective users should verify current yield rates, incentive sizes, collateral factors, and protocol risk parameters on Kamino and OnRe before acting.
This integration brings the reliability of the $750B global reinsurance market to Solana DeFi, providing a new class of investors with direct access to consistent real-world yield. OnRe's yield-bearing asset, ONyc, is now accepted as collateral within Solana's DeFi ecosystem.
[1] OnRe Press Release [2] Kamino Announcement [3] Global Dollar Network Blog [4] OnRe Risk and Caveats
- The reinsurance-backed yield from OnRe's ONyc token, a stablecoin-backed asset, is now utilized as onchain collateral within Solana's blockchain technology, marking a significant step in crypto finance by bringing the reliability of the global reinsurance market to DeFi on Solana.
- Users can now earn the uncorrelated crypto market volatility-proof yield from ONyc within Solana's DeFi ecosystem, as Kamino's finance platform has integrated ONyc as accepted collateral, allowing for leveraged strategies and potential increased returns in the technology-driven market.
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