Every investment carries risk, but this misses how ONyc actually absorbs losses. There's no junior tranche in ONyc itself, but there is a loss absorption layer: - Premium is paid to OnRe upfront and held in their reserve. - This premium is broken up roughly into two halves: a) into yields for users (that current 11% you see) and b) into what it think might be the expected loss - Claims within those expectations are paid out of that expected loss reserve (it does not touch NAV). - OnRe has replayed real events against its book. Hurricane Ida, Typhoon Jebi and Storm Bernd all came out at zero net NAV impact. - Hurricane Ian, the costliest US storms on record, came out at about 3.5% NAV drawdown. tl;dr yes, holders carry the risk beyond what's expected, but it would take a major event to impact NAV Disclosure: @elementaldefi works closely with OnRe If you don't want to be actively monitoring the risks, Elemental created ENDAS (Elemental Natural Disaster Alert System) specifically for OnRe's books. This allows us to rapidly unwind positions into stables if we detect something that could be serious enough to move the needle.

Unfiltered comments from our @elementaldefi community on our latest @orca_so x @onrefinance pool. Win for Elemental Win for Orca Win for OnRe Win for Solana DeFi users This is the sort of setup dreams are made of. IT IS POSSIBLE to create products that are not predatory. I hope all of DeFi moves in this direction 🤝