> For the complete documentation index, see [llms.txt](https://docs.onre.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.onre.finance/onyc-in-defi/onyc-buybacks.md).

# ONyc Buybacks

ONyc buybacks are a treasury and liquidity management mechanism used to support secondary market efficiency and maintain a tight relationship between ONyc market price and NAV.

Buybacks are discretionary and policy-driven. Purchased ONyc is returned to the offer contract for repurchase at NAV or otherwise managed according to governance policy. Buyback execution depends on market conditions, treasury capacity, and revenue generation. Past execution does not guarantee future activity.

### Capital Sources and Reserve Stabilization

Buybacks are funded from protocol operating revenue, underwriting premiums allocated to the liquidity layer, and unallocated treasury reserves. Buybacks are executed onchain via open-market purchases and are non-inflationary.

View on Solscan: [https://solscan.io/account/45YnzauhsBM8CpUz96Djf8UG5vqq2Dua62wuW9H3jaJ5](https://solscan.io/account/45YnzauhsBM8CpUz96Djf8UG5vqq2Dua62wuW9H3jaJ5?exclude_amount_zero=false\&flow=out\&page_size=10\&remove_spam=false\&to_address=BWWBf4RPajg8ZgZxqVVduAsC9TdZJJPhpAdk9JDft5o4#transfers)

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#### Underwriting Premiums

Premiums are received upfront by OnRe’s licensed reinsurance entity. A defined portion is allocated to the onchain liquidity layer for the duration of the associated risk period.
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#### Protocol Operating Revenue

Fees generated from deployed capital across supported reinsurance and yield strategies accrue to the protocol and may be allocated toward ONyc buybacks.
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#### Liquidity Layer Reserves

OnRe maintains intentionally unallocated capital reserves to support secondary market liquidity and facilitate price stabilization when required.
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### Execution Flow

1. ONyc market prices across supported DEXs are monitored relative to NAV.
2. When price deviations or liquidity imbalances are observed, treasury may allocate capital to buybacks.
3. ONyc is purchased on the open market in a transparent, onchain manner.
4. Purchased ONyc is returned to the offer contract for repurchase at NAV or otherwise handled per governance policy.

### Constraints

* Buybacks are discretionary and non-continuous.
* Buybacks are non-inflationary and not funded by token emissions.
* Execution size and timing depend on revenue availability, treasury liquidity, and market conditions.
* Buybacks do not impact ONyc yield mechanics or point accrual.


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