The Onchain Yield Coin (ONyc)

Overview

ONyc, the onchain yield coin, designed to allocate stablecoin collateral into real-world reinsurance underwriting and other yield-generating strategies. The token targets a base yield of 16% APY, generated through reinsurance performance and supplemented by returns from collateral assets. This approach aims to create a yield profile that remains uncorrelated to crypto market volatility.

Collateral Structure

ONyc adopts a multi-collateral framework, with the first collateral layer as sUSDe, integrated through a partnership with Ethena to provide stable, verifiable yield on-chain. Over time, the collateral base is expected to diversify with the addition of assets such as USyc and USDG, improving risk distribution and reducing reliance on any single stablecoin.

Liquidity and Access

Institutional investors can onboard through the OnRe platform by completing KYC verification and minting positions directly into the regulated reinsurance pool. For DeFi participants, ONyc is available on decentralized exchanges like Orca, offering 24/7 liquidity and the ability to trade or rebalance positions without waiting for redemption windows. Holders can use ONyc as collateral within other protocols or retain it as a liquid yield-bearing asset.

Yield Model

The yield generated by ONyc is derived from two primary components: premiums collected from reinsurance underwriting and returns from tokenized treasuries and other crypto-native yields. This combination creates a multi-source yield that compounds over time. The design ensures that stablecoins held as collateral are continuously put to productive use rather than remaining idle, aligning with OnRe’s objective to scale underwriting capacity while maintaining transparent, onchain accounting of performance.

Compliance and Regulatory Considerations

ONyc operates within OnRe’s regulatory approvals in Bermuda. The platform holds a Class IIGB insurance licence and a Class F Digital Asset Business licence, governing both underwriting activities and digital asset management. All investors must meet eligibility requirements and complete KYC prior to minting or redeeming tokens.

Use Cases

ONyc is intended for allocators, protocols, and treasury managers seeking regulated exposure to reinsurance-linked returns. The token can be incorporated into treasury strategies, used as collateral for borrowing, or traded in secondary markets to manage liquidity. This structure is designed to provide flexibility for both institutional investors and on-chain participants who require transparent, high-yielding collateral.