Meme Insider
If you're into meme tokens on Solana, you know the drill: wild price swings, quick flips, and the constant hunt for ways to make your stablecoins work harder while you wait for the next big pump. That's where this latest tip from OnRe Finance comes in handy. In a recent tweet, they highlighted a slick strategy to borrow USDG on Kamino at a super-low 0.27% APY and loop it into their ONyc token to rack up 20.35% APY. It's all about efficient leverage and compounded yields from real-world assets—think insurance premiums turned into on-chain gains.
What Exactly is ONyc?
ONyc, short for Onchain Yield Coin, is a yield-bearing token created by OnRe Finance. It's backed by stablecoins and generates returns from real-world sources like reinsurance premiums—basically, the money insurance companies pay to protect against big risks. Unlike volatile meme tokens, ONyc is designed to be stable and composable, meaning you can use it across various DeFi protocols on Solana without losing its yield-generating power. According to OnRe's blog, it's now integrated with Kamino, Solana's biggest money market, unlocking new ways to leverage it.
This makes ONyc a smart parking spot for your USDC or other stables when you're not chasing meme pumps. You get consistent yields that beat traditional savings accounts, all while staying in the crypto ecosystem.
Breaking Down the Kamino Loop Strategy
Kamino Finance is a decentralized lending and borrowing platform on Solana, kind of like Aave but optimized for speed and low fees. The strategy OnRe is promoting is a "multiply" or looping tactic:
Borrow USDG: Start by depositing collateral (like SOL or other assets) on Kamino and borrow USDG—a stablecoin pegged to the US dollar—at just 0.27% annual percentage yield (APY). APY here is the interest rate you pay over time.
Loop into ONyc: Take that borrowed USDG and convert it into ONyc. ONyc earns a base yield from its underlying assets, plus additional rewards, totaling up to 20.35% APY as shown in the tweet.
Leverage Up: By looping—borrowing more against your ONyc position—you amplify your exposure. The interface shows a max multiplier of 2.0x and an average of 1.79x, meaning you can nearly double your effective position without putting in extra capital upfront.
The result? Your stablecoins aren't just sitting idle; they're compounding yields automatically. OnRe calls it "a smarter way to put your stablecoins to work," and with Solana's fast transactions, it's seamless for meme traders who need liquidity on demand.
Why This Matters for Meme Token Enthusiasts
Meme tokens thrive on hype and volatility, but between launches, you need strategies to grow your stack. This ONyc loop on Kamino offers real-world yields (think 8% from premiums plus stablecoin interest) that are less risky than holding volatile memes. Plus, with OnRe's points program, you earn rewards for participating, which could lead to future airdrops or bonuses—music to any degen's ears.
But remember, leverage cuts both ways. If markets turn south, liquidation risks rise, so start small and monitor your positions. Tools like Kamino's liquidation analysis can help you stay safe.
Getting Started
Head over to Kamino Finance and connect your Solana wallet. Look for the ONyc/USDC Multiply market, deposit your collateral, and follow the prompts to borrow and loop. For more details on ONyc, check out OnRe's official site.
This strategy is a game-changer for turning downtime into gains. If you're building your meme token knowledge base, add this to your toolkit—it's where DeFi meets practical yield farming on Solana. Stay tuned for more updates as OnRe evolves ONyc into even more ecosystems.
