Solana News Today: ONyc Debuts on Kamino Offering 14% Base Yield as Onchain Collateral

OnRe’s yield-bearing asset, ONyc, has launched on Kamino, Solana’s leading DeFi money market, marking the first time reinsurance-backed yield is accepted as onchain collateral. This development introduces real-world yield sources into the Solana DeFi ecosystem, enabling users to leverage ONyc for borrowing, lending, and looping strategies. By integrating with Chainlink’s Onchain NAV solution, ONyc’s net asset value is delivered in real time, ensuring transparent and tamper-resistant collateralization [1].

ONyc, a stablecoin-backed yield-bearing asset issued by OnRe, now allows users to earn a base yield of over 14%, uncorrelated to crypto market volatility. It provides 24/7 access to onchain liquidity and supports real-time tracking of net asset value. This integration enhances Solana’s DeFi infrastructure by incorporating a composable, liquid, and resilient asset with real-world risk exposure [1].

Incentive programs are being launched to encourage early participation. A $200K rewards pool is available to reduce borrowing costs for users who deposit ONyc as collateral to borrow USDG on Kamino. Additionally, a 5x Ethena Points multiplier is offered to ONyc holders on qualifying sUSDe deposits, enhancing the utility of real-world yield collateral [1]. Looping strategies also enable users to redeploy borrowed USDG for acquiring more ONyc or other assets, increasing exposure and potential returns.

Kamino, with over $700 million in stablecoin TVL, is a key player in the Solana ecosystem. Its role in enabling capital deployment and liquidity strategies is now extended through ONyc’s integration. Mark Hull, a Kamino contributor, highlighted the importance of high-quality collateral assets like ONyc in expanding DeFi’s utility for real-world investments [1].

The collaboration between OnRe, Kamino, Global Dollar Network, and Ethena demonstrates the growing convergence of traditional finance and blockchain infrastructure. Nick Robnett at Paxos, on behalf of Global Dollar Network, emphasized the significance of this launch in bringing real-world assets with intrinsic value onchain and making them accessible to a global user base [1].

OnRe aims to bridge the $750 billion reinsurance market with blockchain, providing investors with consistent real-world yield through structured products. The company’s focus on transparency, scalability, and capital efficiency positions it as a transformative force in how capital is deployed in the digital economy [1].

Source: [1] ONyc Launches on Kamino, Unlocking Real-World Yield and Collateral Utility in Solana DeFi (https://www.livebitcoinnews.com/onyc-launches-on-kamino-unlocking-real-world-yield-and-collateral-utility-in-solana-defi/)