Who backs OnRe
OnRe secured backing from:
- Ethena Labs (creators of USDe stablecoin)
- Solana Ventures (Solana Foundation’s investment arm)
- RockawayX (seed investor in Solana, 15+ ecosystem projects)
- Coinbase Ventures
The team brings over a decade of traditional reinsurance underwriting experience, now combined with on-chain transparency and composability.
Why the airdrop opportunity matters
OnRe launched a points program in September 2025 that rewards users based on how they deploy ONyc across DeFi protocols, with multipliers ranging from 1x (basic holding) to 4x (yield trading on Exponent). While OnRe has not explicitly confirmed a token airdrop, points programs in DeFi often serve as precursors to token distributions.
Current competitive advantages:
- Low competition: Fewer than 10,000 active farmers (based on community estimates and leaderboard data)
- Modest capital thresholds: Top 300-400 leaderboard positions held by users with 2-2.6 million points
- Multiple yield stacking opportunities: Base reinsurance yield + DeFi protocol incentives + points multipliers
- Institutional backing signals credibility and long-term viability
Compare to similar opportunities: Ethena’s USDe airdrop rewarded early sUSDe farmers with substantial allocations; OnRe’s lower awareness suggests higher expected value per participant for early entrants.
Risks and how to manage them
Underwriting risk
Reinsurance pools face claims from catastrophic events (hurricanes, earthquakes). A heavy claims year can slow NAV growth or cause drawdowns.
Mitigation: Size positions assuming quarterly exit timing; treat this as medium-term capital, not instant liquidity.
Smart contract risk
OnRe’s Solana programs are audited by Quantstamp (three final reports covering core program, offer/redemption spec, and diff review), but no audit eliminates all risk. You also inherit risks from protocols where you deploy ONyc (Kamino, Exponent, etc.).
Mitigation: Avoid deploying more than you can afford to lose; spread exposure across 2-3 strategies rather than max-levering one.
Leverage liquidation risk
Looping and multiply strategies amplify both gains and losses. If borrow rates spike or ONyc NAV drops sharply, positions can liquidate.
Mitigation: Keep leverage modest (2-3x max for most users); set price alerts; maintain buffer capital to add collateral if needed.
Collateral stack risk
ONyc’s design references sUSDe as collateral yield source, so you inherit risk from Ethena’s basis trading and custodial structure.
Mitigation: Understand that yields depend on multiple layers (reinsurance performance + sUSDe yields); diversify beyond OnRe for portfolio balance.
Redemption constraints
Primary redemptions batch on a quarterly schedule with pro-rata allocation if requests exceed available liquidity. You can trade ONyc on AMMs anytime, but may face slippage during stress.
Mitigation: Plan for 90-day lock-up cycles; use secondary markets for small exits; avoid treating ONyc as instant-liquidity reserves.
Regulatory access
U.S. residents and certain other jurisdictions cannot mint ONyc directly due to licensing restrictions.
Mitigation: Check eligibility before starting KYC; affected users can only participate via secondary market purchases (points still accrue on holdings).
What to expect from a potential token launch
Based on patterns from similar DeFi projects:
- Points snapshot: Likely taken without advance notice to prevent gaming; maintain consistent participation rather than last-minute farming
- Allocation formula: Typically weighted toward total points earned + duration of participation + protocol usage diversity
- Vesting: May include immediate claim portion plus time-locked tranches to encourage long-term holding
- Governance utility: Token likely grants voting rights on pool strategies, parameter adjustments, and treasury management
OnRe has mentioned an eventual ONRE token tied to platform TVL and revenue generation, distinguishing it from pure governance tokens. Early liquidity providers in the ONe pool (institutional product launched May 2025) were promised allocation in the ONRE token, suggesting points farmers may follow similar logic.
Comparison to other RWA farming opportunities
| Project | Yield Source | Redemption Style | Audit Status | Entry Barrier |
|---|---|---|---|---|
| OnRe (ONyc) | Reinsurance premiums | Quarterly windows + AMM secondary | Quantstamp (3 reports) | KYC + non-U.S. |
| Re Protocol | Reinsurance (EVM chains) | Quarterly pro-rata | Hacken + Certora | Similar KYC gates |
| Ondo USDY | U.S. Treasury bills | Continuous (restrictions apply) | Spearbit + Cyfrin | Non-U.S. only |
| Maple Finance | On-chain credit | Pool-specific | Sherlock + 0xMacro | Varies by pool |
OnRe’s advantage: Solana’s speed and low fees make looping/rebalancing practical; established RWA protocols on Ethereum carry higher gas costs for similar strategies.
