OnRe

OnRe receives a C risk grade (47/100) from Hindenrank, where lower scores indicate lower risk. Elevated risk — unique catastrophe reinsurance tail risk layered atop DeFi collateral counterparty risk, with admin-controlled NAV creating centralization risk; offset by genuine Bermuda dual-licensing regulatory moat and clean 13-month track record. OnRe is the first licensed on-chain reinsurer, operating under dual Bermuda BMA licensing (Class F digital asset + Class IIGB insurance) and issuing ONyC — an SPL yield token on Solana backed by both reinsurance premiums from licensed insurers and returns from a diversified RWA stablecoin basket (T-bills, USYC, sUSDe, USDC). With $193M TVL (5 Quantstamp audits + 1 Ackee Blockchain audit, no incidents), it targets 11.81% APY through diversified specialty (D&O, cyber, marine, aviation, crop) and catastrophe (wind, earthquake, wildfire) reinsurance lines in Bermuda-regulated segregated accounts. Its C grade reflects genuinely novel risk: catastrophe XoL exposure creates non-DeFi tail risk (major natural disasters can compress ONyC NAV), DeFi collateral layering (sUSDe, syrupUSDC) adds correlated risk, and admin-controlled NAV parameters give the team direct control over $193M in redemption pricing. Its strong value score (B+) reflects OnRe's unique regulatory moat — dual Bermuda insurance licensing is a multi-year barrier to entry that no DeFi competitor has overcome.

The key risks identified for OnRe are: (1) ONyC NAV is set by admin-controlled parameters in the smart contract — there is no external oracle or third-party verification. The admin hierarchy can directly influence the redemption value of all ONyC, representing a centralization risk for $193M in user capital. (2) The protocol underwrites property catastrophe risks (wind, earthquake, wildfire, flood). A severe natural disaster season could trigger loss payments that temporarily reduce ONyC NAV by 10-30%. The protocol targets a 0.5% annual probability of capital loss — real, not theoretical. (3) ONyC collateral includes sUSDe (Ethena) and syrupUSDC (Maple Finance). A DeFi stress event affecting these assets could reduce collateral value simultaneously with a catastrophe event triggering claim payments — a correlated risk scenario not captured by standard DeFi risk models. (4) Redemptions are capped at 2.5% of NAV per month and execute at time-of-fulfillment price. During a major catastrophe, redemption queues could trap capital for 3-6+ months at declining NAV values.

OnRe scores 47/100 across eight risk dimensions: Mechanism Novelty: 9/15, Interaction Severity: 14/20, Oracle Surface: 7/10, Documentation Gaps: 2/10, Track Record: 3/15, Scale Exposure: 5/10, Regulatory Risk: 4/10, Vitality Risk: 3/10. The highest risk area is Interaction Severity at 14/20.

Among 77 rated RWA protocols on Hindenrank, OnRe ranks #65 by safety (lowest risk score = safest). Its 47/100 risk score and C grade place it among the riskier RWA protocols.

OnRe scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.