Hey there, crypto enthusiasts! If you’ve been scrolling through X lately, you might have stumbled upon an exciting post by @DefiSolar about a juicy DeFi opportunity. On August 8, 2025, they shared a strategy that’s turning heads: earning a 14% APY (Annual Percentage Yield)​ with ONyc on OnRe Finance while looping it with a negative 10% APY on borrowed USDG. Yes, you read that right—negative borrow rates! Let’s break this down and see what it means for you.

What’s the Buzz About ONyc and OnRe Finance?

ONyc is a multi-collateral, yield-bearing asset backed by stablecoins, created by OnRe Finance, a platform shaking up the reinsurance industry with blockchain tech. The idea is simple: you supply assets like ONyc, USDC, or USDG to earn interest, and you can also borrow against them. The screenshot shared by @DefiSolar shows a market size of $6.54M, with ONyc offering a solid 13.96% APY on supplied assets and USDG showing a wild <0% APY on borrowed amounts.

This negative borrow rate means you’re essentially getting paid to borrow USDG, which @DefiSolar is using to “loop” their ONyc position. Looping, in DeFi terms, is reinvesting your earnings to compound your returns. So, by borrowing USDG at a negative rate and using it to buy more ONyc, they’re stacking up that 14% APY while pocketing an extra 10%—a win-win!

How Does This Work?

Let’s simplify it. Normally, when you borrow money, you pay interest (the APY on the borrowed amount). But here, OnRe Finance is subsidizing the borrow rate for USDG, making it negative. This could be a promotional tactic to attract users or a sign of excess liquidity in the system. @DefiSolar supplies $4.58M worth of ONyc at 13.96% APY and borrows $1.87M of USDG at <0% APY. The result? They earn 14% on their ONyc and get a 10% bonus for borrowing USDG, effectively supercharging their returns.

For example:

• Supply $1,000 of ONyc → Earn $140 annually.
• Borrow $500 of USDG at -10% → Get $50 paid to you.
• Reinvest that $500 into more ONyc → Rinse and repeat.

This strategy leverages the platform’s mechanics to maximize profits, but it’s not without risks—more on that later.

The Community’s Take

The thread sparked some interesting reactions. @0xNIC0 raised a concern about the sustainability of subsidized yields, suggesting that teams backing these rates might face challenges down the line. @jussy_world echoed this, calling it “sick” but admitting the abundance of strategies can be overwhelming. @GuiBibeau, meanwhile, thanked @DefiSolar and hinted at other opportunities like Kamino and Season 4, showing this is part of a broader DeFi trend.

Is This a Golden Opportunity or a Red Flag?

While the numbers look tempting, a negative borrow APY isn’t common and could signal a few things. It might be a temporary incentive to boost adoption, or it could indicate over-supply of USDG, pushing rates into the negative. Historically, such anomalies in DeFi can lead to high rewards but also higher risks—like sudden changes in policy or market shifts. Always check the platform’s terms and your risk tolerance before diving in.

Why It Matters for Meme Token Fans

Even if ONyc isn’t a meme token, this strategy ties into the wild world of DeFi that often overlaps with meme coin hype. Platforms like OnRe Finance are pushing boundaries, much like how meme tokens like Dogecoin or Shiba Inu rode community waves. Understanding these yield farming tricks can help you navigate the broader crypto landscape, whether you’re chasing meme gains or stable returns.

Get Started with OnRe Finance

Ready to explore this for yourself? Head over to OnRe Finance to set up your wallet and start supplying assets. Keep an eye on the dashboard (like the one in the tweet) to monitor APY and borrow rates. And if you’re new to DeFi, start small—test the waters before going all in!

What do you think about this strategy? Drop your thoughts in the comments, and stay tuned to Meme Insider for more crypto deep dives!