As an added bonus, you may earn trading commissions by providing liquidity to a trading pool.
What is the difference between an Automated Market Maker and a traditional exchange?
There are two kinds of cryptocurrency exchanges: conventional orderbook exchanges and automated market maker (AMM) exchanges. Traditional orderbook exchanges are the most common form of cryptocurrency exchange.
In the first case, the orderbook links users trying to purchase tokens with users wishing to sell tokens in the same quantity as they are buying. Instead of trading directly with other users, users in the latter case trade using a pool of tokens that they own.
AMM-based exchanges, it is considered, are the preferable option for blockchain applications because of their simplicity and composability, as opposed to other approaches.
The Reason Orca Chose Solana
Solana’s performance stands out among the alternatives trying to extend the blockchain ecosystem: 50,000 transactions per second, 400ms block timings, and $0.01 average transaction costs, to name a few Solana’s performance stands out among the alternatives trying to extend the blockchain ecosystem: 50,000 transactions per second, 400ms block timings, and $0.01 average transaction costs, to name a few specifications.
Furthermore, the Orca team has been consistently impressed by the Solana team’s commitment to value, vision, and technical prowess.
As a result, they feel that Solana is the most appropriate platform for supporting the next generation of DeFi applications.
The Governance Token
On Monday, August 9, 2021, the ORCA governance token was officially introduced. On the Tokenomics page, you may get more information on the ORCA coin.
ORCA token mint address: orcaEKTdK7LKz57vaAYr9QeNsVEPfiu6QeMU1kektZE (Solana Explorer)
The following wallets are required to connect to Orca:
- Sollet.io (the Solana wallet created by Project Serum)
- Phantom (a wallet that was funded by EcoSerum)
- Solflare (a multiplatform wallet that is available on both desktop and mobile)
- Math Wallet (a multichain wallet that is available on desktop and mobile)
- Coin98 extension (which is available on both desktop and mobile) (a multichain wallet).
They want to incorporate other wallets that allow Solana program execution when they become available in the future.
Is it possible to use Orca on your phone?
It is possible to utilize Orca on the phone in conjunction with Sollet, although the user experience is less than ideal.
Even though they’d want to have greater support, they don’t know of any reliable wallet providers that allow for the execution of Solana smart contracts on mobile devices. In the event that this changes, they will make it a priority.
Is Orca Open Source (Smart Contract)?
The code for their Constant Product pools may be found here, as well as the code for their Stable Curve pools. It should be noted that the Orca smart contract makes use of the token-swap technology that was created by the Solana group. The Constant Product pool is the only one that has had a rigorous audit.
Why To Provide Liquidity
It is possible for users to contribute liquidity to Orca’s pools in the aim of making money on trading commissions and commissions. Consider the scenario in which you offer liquidity to the SOL-USDC pool. The SOL-USDC liquidity tokens will be distributed to you in exchange for your participation.
Once the pool is established, each time a user exchanges SOL for USDC or vice versa, 0.3 percent of the transaction value is contributed to it. This accumulation of fees results in the pool being worth more than the sum of its contributions over a period of time.
Later, when you redeem your liquidity tokens, you’ll get a proportionate part of the pool in SOL and USDC, which will include any fees that have accrued during your time in the pool. (However, keep in mind that, owing to divergence loss, you are not assured to make a profit).
How Earning Fees Work
Each time a swap is completed, the 0.3 percent trading charge is instantly deposited into the pool. When you withdraw liquidity, the quantity of tokens you get back increases as a result of these fees.
Even though you are not required to collect trade fees, you may harvest ORCA rewards from qualified Aquafarms if you so want.
Liquidity Tokens (LPT)
Liquidity tokens are tokens that represent a proportionate percentage of a liquidity pool’s total assets. For example, if you contribute to the SOL-USDC pool, you will get SOL-USDC liquidity tokens in exchange for your contribution.
If you have made a liquidity deposit, you will be able to view these tokens in your wallet.
At any moment, you may exchange your liquidity tokens for a proportionate part of the pool’s assets.
Can You Yield Farm & Stake On Orca?
Yes, Orca’s yield farming program is based on aquafarms. Aquafarm LPs receive money from both trading fees and ORCA emissions.
You will watch ORCA awards accumulate in a continuous stream, and you will be able to harvest them at any moment with no lock-ups.
Trading costs are deducted immediately from your LP tokens, which are then accessible for withdrawal.
How to Exchange Tokens Guide
Create a Solana wallet
To utilize Orca, you’ll need to first establish a Solana wallet using either Sollet.io or Phantom, which you can do here.
Because Orca is a non-custodial exchange, your tokens will be swapped directly to and from your wallet, rather than via a third party.
It is recommend that you utilize Orca in conjunction with the Phantom wallet for the best possible Solana experience.
Buy Solana Tokens (SOL) on a decentralized exchange such as FTX, Binance, or Coinbase.
In Phantom, click Deposit.
Type the name of the token you want to deposit into your wallet, in this example Solana, into the text box provided.
The Deposit Address will be copied when you click Copy. Send SOL to the Deposit Address via Binance, FTX, or Coinbase.
It is critical to double-check that the deposit address is right and that the withdrawal method is Solana SPL before transferring cash!
Convert ETH to SOL through Sollet + MetaMask
In Sollet, expand the row for SOL.
Click Receive -> “ETH” tab -> Connect to MetaMask.
Enter how much you’d like to convert, then confirm the transaction via MetaMask.
Convert tokens from Ethereum via MetaMask
If you have ERC-20 tokens that you’d want to trade on Orca, you may convert them to SPL equivalents via the Sollet UI by linking your MetaMask. To do so, in Sollet, click on the + symbol in the upper-right corner of the header.
Connect your wallet to Sollet.io, then click the plus symbol in the yellow circle to the right of the wallet.
By choosing from the supplied list, you may add any tokens you’d want to convert to your account. It is also possible to manually add tokens through the ERC-20 contract address (found under the “ERC20 Token” page) or the SPL mint address, if you are comfortable working with contract/mint addresses on a one-to-one basis (“Manual Input” tab).
You may now receive the token once you’ve put it to your wallet by clicking on it to open up the row and then clicking Receive.
Click to the second tab, then connect your MetaMask.
Enter an amount, click Convert, and confirm the transaction in MetaMask. Once the transaction is confirmed, the tokens will appear in your Sollet.
Connect sollet wallet with Orca and exchange
Click “connect wallet” on the Orca home page , then enter the wallet password in the dialog box, click ‘’Unlock‘’, and then click ‘’Connect‘’. Orca has completed the task of linking wallets.
On the far left of the page you can see the type and number of tokens in the wallet.
In the following interface, you may choose the trading pair and the quantity of tokens you wish to exchange, then click Exchange and then Approve to finalize the transaction and finish it.
How To Provide Liquidity
Note: due to divergence loss, you are not guaranteed a positive return!Note: it is not possible to transfer your liquidity provision (LP) tokens and withdraw from another account!Click Pools at the top of the main screen, select the pool that you want to provide and then click “Deposit.”
As seen in the accompanying picture, enter the quantity of tokens you want to deposit into the pool (you need to have the same two tokens in your wallet base on the pool). To finish the deposit confirmation in your wallet, click “Deposit” and then “Approve” on the next screen. On this screen, you can also view the annual percentage yield (APY) based on the last 30 days.
When you finished, you’ll see your liquidity information appear in the middle and upper part of the page.
How to Withdraw Tokens From a Pool
If you want to Withdraw tokens from the pool, click the “Withdraw” button as the below image:
Once you’ve determined how much money you want to withdraw, click “Withdraw” and then “APPROVE” to check that the transaction has been completed in the wallet. Additionally, you can view the total quantity of tokens that you will be able to obtain after the withdrawal (including both the liquidity token which you provided and the reward token).
How to Use Double-Dip Pools
Provide Liquidity to an Aquafarm
Note: due todivergence loss, you are not guaranteed a positive return!Note: it is not possible to transfer your liquidity provision (LP) tokens and withdraw from another account!
In order to make a deposit into an eligible Aquafarm, follow the instructions in the How to Provide Liquidity Guide. Following the completion of a deposit, you will receive Orca LP tokens in your wallet that correspond to the pool to which you have contributed liquidity. The “Double-Dip” category contains a list of Double-Dip pools that are eligible for participation.
Double-Dip Orca LP Tokens
Double-Dip pools may be found by selecting the Double-Dip tab and searching for the Double-Dip pool you’d want to join. As seen in the screenshot below, choose “Double-dip” from the drop-down menu. To complete the confirmation in your wallet, choose “APPROVE” from the confirmation menu. That’s all there is to it! You are now eligible for two types of prizes. Rewards may be manually harvested by selecting “Harvest” from the rewards menu, or all profits will be automatically collected when liquidity is removed from a pool.
How to Withdraw Tokens From a Double-Dip Pool
From the Double-Dip tab, choose “Harvest & Undip” from the drop-down menu. Your Orca LP tokens will be visible in your wallet from this point on. Then, to withdraw liquidity from an Aquafarm, just follow the instructions in the How to Withdraw Tokens From a Pool.
All Images Are From The Orca Website.