OnRe's reinsurance RWA product ONyc reaches $120M in deposits on Kamino with $50M+ borrowed across 1,100 loans, backed by real reinsurance premiums from an $800B global market.
DeFi & Yields ·
OnRe's reinsurance RWA product ONyc has accumulated approximately $120M in deposits on Kamino, representing a 14.3% increase from its May peak of $153M. The protocol has facilitated over $50M in borrowing activity across more than 1,100 loans, with collateral derived from real reinsurance premiums rather than traditional DeFi lending mechanisms. This structure allows yield generation to flow directly from the underlying insurance premium income.
The product differentiates itself from conventional RWA offerings by providing exposure to the global reinsurance market, valued at over $800B, rather than confining capital to lower-yielding instruments such as Treasury bills. By converting reinsurance premium flows into onchain collateral, ONyc enables that risk to function within decentralized lending and borrowing protocols. The mechanism essentially replicates the underwriting economics of a traditional insurance company, migrating the business model onto blockchain infrastructure.
Key questions remain about the sustainability of deposit growth, the credit quality of underlying reinsurance counterparties, and regulatory treatment of onchain-native reinsurance products as they scale beyond their current size.