Unlocking More Utility: ONyc Joins Kamino Multiply

Vault Info

ONyc Multiply is a leverage product that gives you increased exposure to the ONyc token. ONyc represents tokenized access to returns generated from OnRe’s Asset Management business as a fully licensed reinsurer, underwriting business globally from Bermuda. Unlike crypto-native yields, ONyc is backed by reinsurance premiums and collateral yield overseen by the Bermuda Monetary Authority (BMA).

By leveraging ONyc, you amplify exposure to uncorrelated, institutional-grade yield. ONyc holders are entitled to baseline reinsurance premiums plus potential upside from collateral returns. Through Multiply, you can increase your exposure to this yield while compounding returns.

How It Works

• With one click, Kamino Multiply creates a position on Kamino using ONyc as collateral and borrowing USDC or USDG against it.
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• By increasing your multiplier, you amplify exposure to ONyc’s NAV growth and premium-based yield. 
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• Premium mechanics:
  
  
  • ONyc’s yield is driven by upfront reinsurance premiums, reserved in full for claims at the time policies are written. Each day, a portion of that premium becomes earned and flows into ONyc’s NAV. This process is governed by actuarial models that incorporate expected claim frequency and severity, meaning the APY you see is net of modeled claims.
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  • The OnRe team brings over a decade of underwriting experience, consistently retaining ~50% of premiums after claims. This track record reflects conservative reserving and disciplined risk selection. As a result, claims exceeding premium income are considered highly unlikely under modeled scenarios.
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• NAV feed: NAV is recalculated daily by OnRe’s Insurance Committee and published onchain via Chainlink and Pyth oracles, ensuring DeFi integrations reflect the most up-to-date values.
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• Forward pricing adjustment: At each new offer period, expected underwriting and collateral returns are compared against realized results. Any difference is corrected in NAV, ensuring ONyc’s value aligns with actual performance.
  
  

Positions may incur minting/redemption fees from OnRe and borrow interest fees from Kamino, which are dynamically adjusted based on pool conditions. You can view the Historical Net APY of ONyc in the chart below (note: APY reflects realized reinsurance premiums and collateral yield, as reported directly by OnRe’s Actuarial and Insurance Committee). 

• Realized APY is based on actual underwriting performance (earned reinsurance premiums) plus collateral yield, reflected daily in NAV via Chainlink and Pyth oracles.

• Forward-looking APY is an estimate set by OnRe at each new offer period, based on expected reinsurance premiums and collateral returns.

At the end of each offer period, NAV is adjusted to reconcile expectations with actual returns, ensuring ONyc’s value always reflects true realized performance. It is strongly encouraged to read about ONyc in the OnRe Documentation before entering an ONyc Multiply position on Kamino.

Risk

ONyc Multiply has the following risk considerations:

• Collateral Volatility: ONyc is yielding dollar RWA (Real World Asset). While NAV is expected to steadily increase as premiums are earned, catastrophic claims, where claims are greater than premium can result in NAV drawdowns. Leveraged positions may face liquidation if ONyc’s NAV drops too far relative to borrowed assets.
  
  
• Borrow Costs: If too much USDC/USDG is borrowed on Kamino, borrow rates may rise, reducing or eliminating net returns.
  
  
• Underlying RWA Risk: Performance depends on real-world reinsurance. Though uncorrelated to crypto volatility, significant unexpected claims could reduce premium income.
  
  
• Smart Contract Risk: Both OnRe’s issuance contracts and Kamino’s Multiply vaults carry DeFi smart contract risk, despite audits.
  
  

APY Disclosure: The APY displayed reflects underwriting performance and collateral yield. It does not account for extraordinary claims events. While historically consistent, yields are variable.