In 2025, the Solana DeFi landscape is being redefined by platforms that deliver not just high yields, but also transparency and composability. At the forefront of this evolution are Kamino, Solana’s largest lending protocol, and ONyc, a yield-bearing stablecoin asset engineered by OnRe. Together, they are setting new benchmarks for stablecoin farming and risk-adjusted returns in the ecosystem.
Why Kamino and ONyc Dominate Solana’s Yield Market in 2025
Kamino has rapidly scaled its total value locked (TVL), surging by nearly 35% since the start of 2025. This growth is directly tied to its integration of innovative collateral assets like ONyc. Unlike traditional crypto-native yields that often fluctuate with market cycles, ONyc offers a base yield of approximately 14%, sourced from real-world insurance premiums rather than T-bills or speculative trading. This return profile is uncorrelated to broader crypto volatility, making it an outlier among stablecoins.
The synergy between Kamino and ONyc unlocks three critical advantages for Solana users:
How ONyc and Kamino Deliver Top Stablecoin Yields
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ONyc’s Real-World Yield Mechanism: ONyc is a yield-bearing stablecoin backed by real-world reinsurance premiums rather than crypto market speculation or T-bills. Holders earn a base yield of approximately 14%, uncorrelated to crypto market volatility, with transparent, real-time net asset value (NAV) tracking powered by Chainlink Data Streams.
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Kamino’s Lending Strategies: As Solana’s largest DeFi money market, Kamino enables users to deposit ONyc as collateral and access lending, borrowing, and looping strategies. The platform’s composability and 24/7 liquidity allow users to maximize capital efficiency while benefiting from ONyc’s real-world yield.
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User Incentives and Rewards: To drive adoption, OnRe, Kamino, Global Dollar Network, and Ethena launched a $200,000 rewards pool to reduce borrowing costs for users depositing ONyc as collateral to borrow USDG. Additionally, ONyc holders can earn a 5x Ethena Points multiplier on qualifying sUSDe deposits, providing extra incentives for supporting real-world yield onchain.
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Chainlink-Powered Transparency and Security: ONyc’s NAV is delivered in real time via Chainlink Onchain NAV, ensuring tamper-resistant pricing and secure collateralization. This integration supports reinsurance-backed strategies with verifiable, onchain fund valuations, enhancing trust and transparency for all DeFi participants.
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Bridging Traditional and DeFi Yields: By combining premium-backed real-world yields with DeFi-native flexibility, ONyc and Kamino offer a scalable, uncorrelated return profile not available in traditional finance. This integration marks a significant step in bringing institutional-grade yield sources to the Solana DeFi ecosystem.
The Mechanics Behind ONyc’s Real-World Yield
What sets ONyc apart on Kamino is its unique structure as a reinsurer-backed stablecoin. The asset generates yield from insurance premium flows – not from volatile crypto trading or short-term lending rates. This means users can access stable returns regardless of market sentiment or macroeconomic shocks. The integration leverages Chainlink’s Onchain NAV solution, which streams real-time net asset value data directly from OnRe to Kamino via Chainlink Data Streams, ensuring tamper-resistant pricing and secure collateralization.
This transparency is vital for institutional-grade DeFi adoption. Every ONyc token’s value is verifiable onchain, backed by actual reinsurance contracts managed through OnRe’s infrastructure. Users can confidently deploy ONyc as collateral for borrowing USDG or looping strategies on Kamino, knowing their positions are supported by robust risk management protocols.
User Incentives: Beyond Base Yields
The competitive edge goes further with targeted incentive programs designed to bootstrap liquidity and reward early adopters:
- $200,000 rewards pool: Reduces borrowing costs for users who deposit ONyc as collateral to borrow USDG on Kamino.
- Ethena Points Multiplier: Depositors can earn a 5x points multiplier on qualifying sUSDe deposits when supporting real-world yield with ONyc.
- 24/7 Liquidity: Thanks to composable DeFi rails on Solana and transparent NAV tracking via Chainlink, users enjoy instant access to their capital without lockups or redemption delays.
This blend of high base APY, composability across DeFi protocols, and aggressive rewards has made the Kamino and ONyc strategy one of the best DeFi yields on Solana in 2025.
For users seeking stablecoin farming with predictable returns, the Kamino-ONyc combination is now the gold standard within the Solana ecosystem. The ability to earn a base 14% yield, uncorrelated to crypto market swings, has attracted both retail and institutional capital. This surge in demand is reflected in Kamino’s TVL, which surpassed $700 million in stablecoins following ONyc’s integration, a figure that cements Kamino’s position as Solana’s largest lending protocol.
How Users Are Maximizing Returns: Strategies and Risks
The flexibility of ONyc as a collateral asset enables advanced yield strategies. Users can deposit ONyc on Kamino to borrow USDG, then loop these positions to amplify exposure to real-world yields while maintaining low liquidation risk due to the asset’s transparent NAV tracking. The composability of this approach allows for seamless integration with other DeFi protocols, letting users stack rewards from multiple incentive programs.
However, it is crucial for participants to understand the risk profile. While ONyc’s reinsurance-backed structure and Chainlink-powered price feeds reduce counterparty and oracle risks, looping strategies inherently introduce leverage-related risks. Prudent risk management, assessing collateral ratios and monitoring real-time NAV, is essential for sustainable yield generation.
Kamino and ONyc: Redefining What ‘Stable’ Means in DeFi
The partnership between Kamino and ONyc signals a paradigm shift for Solana stablecoin farming. By tapping into insurance premium flows from real-world assets, users are no longer dependent on volatile trading revenue or unsustainable DeFi incentives. Instead, they access a scalable source of yield that is both transparent and liquid.
Top Strategies to Maximize APY with Kamino & ONyc
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Looping ONyc as Collateral for USDG Borrowing: Deposit ONyc on Kamino as collateral, borrow USDG, and redeploy borrowed funds to acquire more ONyc. This recursive strategy amplifies exposure to ONyc’s 14%+ real-world base yield while benefiting from Kamino’s $200,000 incentive pool, effectively boosting net APY.
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Stacking Ethena Points via sUSDe Deposits: Supply ONyc as collateral and borrow sUSDe on Kamino, then deposit sUSDe to earn a 5x Ethena Points multiplier. This approach maximizes both stablecoin yield and onchain rewards, leveraging the special incentives for ONyc users.
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Leveraging Chainlink Onchain NAV for Secure Collateralization: Utilize ONyc on Kamino, which benefits from Chainlink’s real-time NAV data. This ensures tamper-resistant, transparent pricing, allowing users to safely maximize borrowing power and maintain robust positions without exposure to crypto market volatility.
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Participating in Early Adopter Reward Programs: Take advantage of OnRe and Kamino’s $200,000 rewards pool by being among the first to deposit ONyc and borrow USDG. Early users enjoy reduced borrowing costs and enhanced yield, stacking multiple incentives for optimal returns.
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Diversifying Yield with Real-World Asset Exposure: Integrate ONyc into a Solana DeFi portfolio to access premium-backed, real-world yield that is uncorrelated to crypto markets. This strategy provides scalable, stable returns and reduces overall portfolio risk compared to purely DeFi-native assets.
This model also sets a new benchmark for transparency. With Chainlink’s Onchain NAV solution providing tamper-proof data streams, every dollar deposited into ONyc is tracked in real time, removing opacity that has historically plagued off-chain stablecoin reserves.
Looking Ahead: Sustainability and Ecosystem Impact
The success of Kamino and ONyc has broader implications for Solana DeFi in 2025. As more protocols integrate real-world yield products with robust onchain verification mechanisms, the ecosystem moves closer to bridging traditional finance capital with decentralized applications. This trend not only diversifies sources of onchain yield but also attracts new participants seeking safety and transparency over speculative returns.
Kamino Solana yield strategies built around ONyc are already influencing protocol design across Layer 1s, demonstrating how composable collateral assets can drive liquidity while minimizing systemic risk.
The bottom line: In an era where sustainable APY is increasingly rare, Kamino and ONyc have engineered a blueprint for high-yield DeFi that does not compromise on transparency or security. For those navigating best DeFi yields Solana 2025, this duo remains unmatched, not just as a yield source but as a model for risk-adjusted innovation in decentralized finance.