How OnRe Increased TVL by 15% by Integrating with Loopscale
OnRe Finance brings real-world reinsurance yields to Solana through ONyc (Onchain Yield Coin). Onchain capital is pooled and deployed into reinsurance contracts, and yield is produced by premiums and collateral performance.ONyc appreciates in token price via this underlying cash flow and is a composable source of dollar-denominated yield built for onchain markets. Loopscale brought OnRe Finance’s ONyc into lending markets, growing OnRe’s total value locked (TVL) and providing ONyc holders with means to access leverage and unlock liquidity for their tokens.
With Loopscale, holders can use ONyc both as collateral for borrowing and as an asset to lever by Looping (recursively borrowing against itself).ONyc is minted and redeemed through OnRe, while Loopscale’s KYB-verified application enables direct minting for ONyc Loops. This setup provides a compliant framework for issuance and keeps user access fully permissionless.Direct RWA minting: OnRe mints RWA tokens directly into Loopscale vaults. New deposits instantly become collateral and boost OnRe’s TVL, without AMM liquidity or slippage caveats.Order-book lending efficiency: Loopscale’s order-book model directs rewards to where they create depth, achieving higher TVL per dollar of emissions compared to pool-based systems.Permissioned liquidation with NAV pricing: Loopscale serves as the exclusive liquidator, allowing collateral to be priced on net-asset or redemption value instead of volatile on-chain quotes. If market prices deviate, Loopscale can redeem directly with OnRe, ensuring orderly resolution and lower risk.
Users deposited 3.6M ONyc as collateral for Loop (leverage) strategies, taking on an average of 3.7x leverage and earning an 11.99% APY. At the same time, more than $4.0M USDC flowed into the USDC OnRe Vault to supply borrowable liquidity, giving traders the depth to borrow against ONyc or loop their positions.As a result of these two products, Loopscale has become the largest minter of ONyc, responsible for roughly half of all issuance to date, driving a 15% increase in OnRe’s total value locked in the first month.
Most lending protocols rely on pooled liquidity and utilization-curve rates, which restrict collateral options and force issuers to overspend on early incentives. Loopscale’s order-book architecture enables live price discovery and precise leverage control, so incentives flow where they add real depth and risk stays predictable.This design also lowers barriers for new asset classes. Yield-bearing tokens, RWAs, and other novel forms of collateral can list and attract liquidity without heavy bootstrap campaigns or rigid pool structures.For OnRe, that meant minting reinsurance-backed RWAs directly into markets—scaling quickly with lower emissions and stronger risk management, both essential for regulated institutional capital.
OnRe’s first vault shows that real-world yield can scale on-chain without compromising compliance or efficiency.With Loopscale as the foundation, new RWA strategies—from reinsurance to broader institutional credit—can launch natively on Solana and integrate smoothly into DeFi.
