New protocols operating in the DeFi world have begun to turn to the reinsurance market, one of the most established and reliable areas of traditional finance. Standing out among the platforms in this field, OnRe and Re Protocol enable users to invest in real-world reinsurance contracts with stablecoins and manage a total capital of approximately $300 million.
Latest Situation in the World Reinsurance Market
While the worldwide reinsurance market will reach a size of 477.69 billion dollars in 2025, this value is estimated to increase to 691.13 billion dollars by 2031. Factors such as high losses caused by natural disasters, capital regulations, risks in private areas and digitalization are effective in the growth of the sector in this period. Europe ranks first in market share; The Asia-Pacific region stands out as the fastest growing market.
Reinsurance Returns with Crypto Assets
On-chain reinsurance applications connect crypto investors with returns independent of crypto markets. Investments made with stablecoin collateral offer returns based on risks whose price is not directly related to the crypto, such as natural disasters and mortality. Thus, a new, different layer of returns is created in the DeFi ecosystem, which has traditionally been tied to crypto prices.
OnRe and Yield-Oriented Token Economy
OnRe, which manages approximately $128 million in assets, provides its investors with a net asset value increase consisting of both underwriting income and collateral interest, thanks to the $ONyc token structure it offers. The platform, which currently offers an annual return of 10.25 percent, mainly undertakes real estate and natural disaster-related reinsurance risks and makes its agreements through leading brokers. Additionally, the ONyc token’s stable link to net asset value ensures sustainability even during crypto market fluctuations.
By integrating with various DeFi platforms such as OnRe, Kamino, Loopscale and Exponent Finance, it enables the efficient use of more than 90 percent of the capital. In this way, ONyc can function as both a yield token and a reliable DeFi collateral.
Layered Capital and Risk Management with Re Protocol
Re Protocol divides the capital into two different layers: senior ($reUSD) and junior ($reUSDe). The senior tier offers a targeted return of 6 to 8 percent annually, the junior tier offers a targeted return of 13 to 23 percent, and the protocol’s equity covers the initial losses. The company focuses on low-volatility U.S. reinsurance programs and operates at high-efficiency rates. reUSD stands out as an asset that can be used more easily in the DeFi ecosystem with higher liquidity and fast withdrawal opportunities.
On the other hand, reUSD has higher return potential, although it is more sensitive in the secondary market.
LIT Token Distribution and Ecosystem Developments
In a separate development, 50 percent of the LIT tokens of the Lighter protocol were allocated to the ecosystem and the remaining part to the team and investors. It was shared that while 25 percent of the Token’s ecosystem share has been distributed so far, the remaining part is reserved for various incentives and cooperation programs.
