As decentralized finance (DeFi News) seeks deep integration with traditional financial systems, on-chain reinsurance is emerging as a new source of yield. Unlike yield models that rely on the volatility of the crypto market, this sector combines stablecoins with reinsurance contracts to provide investors with a low-correlation yield path to crypto assets, with underlying risks stemming from traditional insurance subjects such as natural disasters and mortality events.
OnRe, as a leading protocol in this field, currently manages assets totaling $128 million. Its $ONyc token mechanism derives yield from underwriting profits and collateral income, with a current annualized yield of 10.25%. Despite rapid project growth, some funds remain unallocated. OnRe focuses on underwriting property catastrophe risks, partnering with top industry brokers, and ensures that $ONyc can maintain its net asset value (NAV) even during severe market fluctuations through a robust secondary market mechanism. The token has been integrated into mainstream platforms such as Kamino, Loopscale, and Exponent Finance, achieving over 90% collateral utilization through cyclical strategies, with comprehensive annualized yields reaching 15% to 20%. Due to its stability, $ONyc is gradually becoming a widely recognized quality collateral asset within the DeFi News ecosystem.
Another important protocol, Re Protocol, adopts a tiered capital structure, dividing funds into senior ($reUSD) and junior ($reUSDe) tranches. $reUSD offers an annualized yield of 6% to 8%, featuring deep liquidity and instant redemption capabilities, making it suitable as a highly composable asset embedded in various DeFi News protocols; while $reUSDe is expected to yield higher returns, ranging from 13% to 23%, but carries first-loss risk and has relatively weak secondary market liquidity. Re Protocol's underwriting portfolio focuses on low-volatility insurance projects in the U.S., maintaining a stable payout ratio between 91% and 93%, demonstrating strong risk control capabilities.