We're excited to share that Perena has selected OnRe as its inaugural real-world asset partner for USD*, its synthetic dollar stablecoin.
Accessing Real-World Reinsurance Market Returns Onchain
USD* will now allocate a portion of its treasury to ONyc, our tokenized reinsurance product. This gives USD* holders exposure to returns from the global insurance industry – a massive, mature market that historically hasn't been accessible to crypto participants. What makes reinsurance compelling is its independence from digital asset price movements. While crypto markets experience volatility driven by sentiment and speculation, insurance premiums and claims follow actuarial models tied to real-world risk events. This creates a natural hedge against DeFi's cyclical nature.
Our approach prioritizes capital preservation. We establish claim reserves using rigorous actuarial methods before any yield is distributed, ensuring obligations are fully covered. This discipline mirrors how traditional reinsurance companies operate, but with onchain transparency and composability.
DeFi Evolves Beyond Circular Yield
This collaboration reflects a broader shift in decentralized finance. Protocols are moving away from purely self-referential yield mechanisms and toward strategies that generate returns from economic activity outside the crypto ecosystem. For Perena, adding reinsurance to USD*'s composition strengthens its foundation with returns that don't depend on trading volume, leverage, or token emissions. For OnRe, it validates our mission to make traditional financial infrastructure accessible and transparent through blockchain technology.
We're looking forward to supporting USD* as it scales and to demonstrating how real-world assets can enhance stability across DeFi.
