OnRe Protocol represents a groundbreaking innovation within the decentralized finance (DeFi) ecosystem on the Solana blockchain, functioning as the world’s first on-chain reinsurance company.
Developed to connect digital capital with the traditional reinsurance market, OnRe enables investors to access stable, non-correlated yields — returns that are not tied to crypto, equity, or credit cycles.
Backed by prominent investors such as Ethena Labs, Solana Ventures, and RockawayX, the protocol operates under a regulatory license from the Bermuda Monetary Authority (BMA), ensuring transparency, compliance, and security in a sector that was historically closed to most crypto participants.
This unique approach transforms reinsurance — the market that protects insurance companies from catastrophic risks such as natural disasters, accidents, or mortality patterns — into a liquid and composable on-chain financial product.
By leveraging Solana’s speed and efficiency, OnRe offers institutional-grade yields while bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi).
Purpose and Mission
The main purpose of OnRe is to unlock access to the global reinsurance market, valued at approximately $750 billion, for DeFi users.
Historically, this market has been restricted to institutional investors due to high entry barriers, lack of transparency, and complex regulation.
OnRe’s mission is to democratize stable yield opportunities, offering consistent returns throughout market cycles — with a 95%+ probability of positive ROI based on actuarial risk modeling.
The protocol benefits both investors and insurers:
- For investors: It provides stable, diversified income resistant to crypto volatility.
- For insurers: It unlocks new capital sources, expands coverage, and optimizes balance sheet efficiency.
Through transparent, verifiable capital flows, OnRe is establishing a trust-based financial layer for risk management and yield generation.
How OnRe Works
OnRe combines reinsurance premiums with on-chain collateral yields, creating a hybrid yield generation system.
Users deposit assets such as USDC — into diversified reinsurance pools on Solana.
These deposits are allocated across multiple reinsurance contracts, generating returns from:
- Reinsurance premiums
- Collateral yields
- OnRe token incentives (ONRE)
A five-member Insurance Committee oversees the process, including two in-house actuaries and one from Willis Towers Watson, the world’s third-largest insurance broker.
The committee manages event-driven risks — such as natural disasters or mortality patterns — that are historically uncorrelated with financial markets.
OnRe also partners with Guy Carpenter and Howden, two leading reinsurance brokers, to source global risk exposure and ensure diversification.
Once deposited, assets become yield-bearing tokens, maintaining liquidity and composability within Solana DeFi.
These tokens can be used as collateral for lending, borrowing, swaps, or staking on integrated protocols like Orca and Kamino.
Main Tokens and Assets
The OnRe ecosystem includes several key tokens that form the backbone of its financial model:
ONyc
- The protocol’s primary yield-bearing dollar.
- Combines reinsurance premiums with collateral yields from sUSDe.
- Currently offers a base APY of around 13.96%.
- Serves as a preferred collateral asset in the Solana DeFi ecosystem.
ONe
- The first reinsurance pool token launched by the protocol.
- Designed to generate returns above 30% in bull markets and around 8% during bear markets.
- Yields come from a mix of reinsurance premiums, sUSDe returns, and ONRE incentives.
- Requires KYC to mint directly but can also be accessed through secondary DeFi pools without additional restrictions.
Yield Generation and Competitive Advantages
Yield generation on OnRe is multi-layered, combining traditional and on-chain income streams:
- Reinsurance premiums – providing a stable, event-driven return.
- Collateral yields – generated through staked assets.
- ONRE incentives – boosting returns for early adopters and liquidity providers.
This design enables OnRe to deliver yields comparable to large money-market funds while operating with a much smaller TVL.
For example, a $10 million pool in OnRe can produce returns similar to a $500 million traditional reinsurance fund.
Key Advantages
- Market resilience: Yields are unaffected by crypto market volatility.
- High diversification: Returns come from uncorrelated, real-world risks.
- Low fees: Solana’s scalability keeps costs minimal.
- Regulated structure: Oversight by the Bermuda Monetary Authority ensures compliance and trust.
Compared to alternatives such as private credit (7% APY), stablecoin lending (4%), or tokenized treasuries, OnRe consistently offers higher and more diversified yields.
Partnerships and Integrations
OnRe’s success is strengthened by an extensive network of strategic partners:
- Ethena Labs: Integrates sUSDe as core collateral.
- Solana Ventures & RockawayX: Provide technical and capital backing.
- Squads & Coinbase Prime: Enhance custody and operational infrastructure.
- Guy Carpenter, Howden, and Willis Towers Watson: Supply global risk access and actuarial expertise.
These collaborations validate OnRe’s approach and expand its reach across both traditional and decentralized financial markets.
Risks and Considerations
While OnRe is designed for stability, it’s essential to recognize potential risks:
- Event-driven variability: Reinsurance yields depend on real-world events such as natural disasters.
- KYC requirements: Certain pools (like ONe) require verification, limiting anonymous participation.
- Third-party dependencies: Reliance on Solana network uptime and Ethena collateral systems.
However, Bermuda’s regulatory oversight and expert actuarial supervision significantly reduce systemic risk, providing a robust safety framework for investors.
How to Farm the OnRe Airdrop
OnRe operates a points-based reward system called OnRe Points, which incentivizes user participation in the protocol — similar to other Solana DeFi reward campaigns that often precede governance token airdrops.
Users can earn points by performing actions such as deposits, lending, borrowing, and liquidity provisioning.
1. Accumulate OnRe Points
The OnRe Points program rewards users who interact with the protocol’s main yield-bearing token, ONyc.
Points are calculated based on:
- Total Value Locked (TVL) in eligible positions.
- Boost multipliers ranging from 2× to 10×, depending on user activity.
The official leaderboard displays each user’s progress and provides tips for optimizing point accumulation.
For example:
- Depositing into specific vaults or looping strategies can multiply your points.
- Using ONyc across integrated DeFi protocols like Orca, Kamino, or RateX further increases your rewards.
2. Deposit and Hold ONyc
Start by depositing USDC into the OnRe app to mint ONyc.
Simply holding ONyc yields approximately 10% APY — generated from real-world reinsurance premiums.
This passive yield alone is enough to accumulate points continuously without additional actions.
3. Explore DeFi Integrations
Under the “DeFi” tab in the OnRe interface, you’ll find several integrated strategies involving other Solana protocols.
Some of them also offer potential future airdrops, such as:
- RateX (leveraged yield DEX)
- Loopscale (modular liquidity protocol)
By interacting with these integrations using ONyc as collateral, you stack multiple point systems at once, maximizing your airdrop exposure.
OnRe stands out as a stable, yield-focused farming opportunity for users who prefer sustainable returns over short-term speculation.
Its integration with large, regulated financial players and its role as a DeFi-native reinsurance layer make it one of the most ambitious projects within the Solana ecosystem.
For those looking to farm long-term, with diversified exposure and consistent yields, OnRe is one of the best options currently available.
🔗Links
OnRe: Official Website
OnRe Documentation: Docs
Disclaimer
This is not financial advice. If you decide to interact with the mentioned protocols, you do so at your own risk. Airdrop Guild is not responsible for any potential losses resulting from participation. Always do your own research before engaging with blockchain-based projects.