ONyc is the participation token of On Re SAC Ltd, a Bermuda-licensed reinsurer that writes property catastrophe coverage: contracts that pay out when a hurricane, earthquake, or comparable event drives industry losses above a set threshold. Holders post collateral that backs these contracts and earn the underwriting premium on top of yield from the collateral portfolio. The token has run for 13 months at a 9.91% net inception APY with no peg break and no claim paid. The trade-off is explicit: premium accrues month by month in benign periods, and a major catastrophe would compress NAV in a single step by the net claim paid. Allez Labs assesses ONyc as high-quality collateral under the Asset Risk Framework.
Collateral earns 3.5% weighted average; the underwriting leg adds 8.3% net of fees.
| Issuer | On Re SAC Ltd (Bermuda) |
| Structure | Segregated account participation token |
| Chain / token | Solana · SPL (standard program) |
| Circulating supply | 175.88M ONyc |
| Market cap | ~$196.3M (supply × NAV) |
| Max NAV drawdown | -0.24% (zero negative months) |
| Mint authority | Program-derived address, no private key (Tier 3 surface) |
| Upgrade + freeze authority | Squads v4 3-of-6 multisigs (Tier 2 upstream) |
| Attestation | Apex Group NAV attestation · 5 audits · Immunefi bounty |
On Re holds dual Bermuda Monetary Authority licenses, complies with BSCR capital rules, and ring-fences each treaty inside a segregated account. Regulatory and Legal is the highest-scoring component in the assessment.
Reserves sit across a Squads v4 multisig verified on-chain, BNY Mellon and Clarien trust accounts, and Coinbase Prime, with periodic NAV attestation from Apex Group. About 96.7% of AUM is documented. Allez verifies the on-chain reserve directly; custodian statements and third-party attestation cover the balance.
13 months live, a maximum NAV drawdown of -0.24%, zero negative months, and no realized catastrophe loss. Market price has tracked NAV within 0.6 basis points on average.
A major catastrophe would compress NAV in a single step by the net claim paid. The largest single treaty (XL 5, US wind and earthquake) carries a $20M limit, about -10.6% of NAV if it triggers in full, and no outward retrocession is in place yet (targeted around 1 July 2026). With 13 months live and no realized cat loss, the path from covered event through claim filing, loss adjustment, settlement, and NAV mark-down has not yet been exercised on this token.
Documentation covers about 96.7% of AUM, evidenced through on-chain verification, custodian statements (Clarien, BNY), and third-party attestation (Radix ILS notices, Apex NAV), leaving ~3.3% (~$6.6M) of recent inflow between statement cycles. The self-reported piece is the premium booked between deal binding and settlement, an estimate that finalizes at contract maturity.
The program upgrade authority and the token freeze authority both sit on Squads v4 3-of-6 multisigs that share the same six signers, with no on-chain timelock today. Allez Labs re-verified the configuration on-chain in June 2026.
On-chain sell-side capacity is about ~$0.73M at 2% slippage on a static snapshot (realized sells have cleared near $0.9M at a few basis points), set against far larger lending-market collateral balances (over $100M in the largest venue alone). Direct redemption from the On Re Liquidity Layer is KYC-gated and processed best-effort.
| Dimension | Assessment | What drives it |
|---|---|---|
| Market & Liquidity | Adequate | Year of track record and tight peg tracking; on-chain depth is thin against lending collateral and the catastrophe path is untested. |
| Technical & Counterparty | Strong | Five audits, program-locked mint, and an institutional dependency stack; no on-chain timelock, and redemption relies on off-chain processing. |
| Operational & Governance | Strong | Dual BMA licenses and segregated-account ring-fencing; a single underwriting team sets deal flow without an external review layer. |
Strongest on regulatory standing, custody quality, and peg stability. Held back by on-chain liquidity depth, the untested catastrophe path, and underwriting centralization. Overall: high-quality collateral.