Orca
Orca is a decentralized protocol operating on the Solana blockchain, providing a platform for trading and liquidity provision. It serves as an Automated Market Maker (AMM) based decentralized exchange (DEX) that supports a wide range of assets tradable on Solana. Orca facilitates permissionless listing, allowing advanced users to create initial pools for assets while offering a simpler pool creation process for tokens already available on the platform. Users can provide liquidity to Orca's pools to earn trading fees and participate in yield farming activities2.
Key Features of Orca
Decentralized Trading: Orca offers users a seamless and cost-effective way to trade cryptocurrencies on the Solana blockchain.
Liquidity Provision: Users can provide liquidity to Orca's concentrated liquidity pools (CLAMM) to earn trading fees and token emissions.
Governance Token: ORCA, the governance token of Orca, was launched in August 2021, allowing token holders to participate in governance decisions within the protocol.
Risk Considerations: Orca operates on a relatively new blockchain, Solana, which may pose risks related to smart contract vulnerabilities. The platform encourages users to understand these risks before engaging in trading activities.
Liquidity Provision with Orca
Orca's liquidity provision model involves users providing liquidity to pools like SOL/USDC and receiving a pool position NFT in return. Liquidity providers earn maker fees from trades executed against their liquidity and can harvest yields at any time. The platform displays the pool's 24-hour Yield/TVL and offers an annualized fee rate projection based on past earnings. Users can adjust settings to view yield projections over different timeframes and may receive ORCA token rewards as incentives for deeper liquidity provision
Sources
Last updated