Orca

Market Making

Orca is a decentralized exchange native to Solana that allows anyone to trade crypto assets and provide liquidity to earn trading fees.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Orca has a core focus on providing a seamless user interface, bolstering ease-of-use and accessibility through human-centric design.
What we like less
There exists one admin token (held by a single member of the Orca team) which is a special token for use specifically in the governance program. It has the ability to create proposals outside of standard ORCA voting requirements, allowing it to pass proposals alone.
What it means for you
Offers you a major advantage in capital efficiency with concentrated liquidity pools. Together with Solana's low fees and fast transaction times, this allows you to quickly and cheaply trade as well as readjust your liquidity positions.

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Information
Exploit/Hacks
None
Info
  • Website
  • Token: ORCA
  • Tags: Market Making
Key Metrics
  • TVL: $226.2M (Rank #49)
  • TVL Ranking by Market Making: #0
  • Blockchain: Solana
  • Chain TVL
    • Solana: $226.19M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Kudelski audited in March 2022
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Core contracts can be upgraded with just an EOA wallet
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
Things to know about Orca

How Orca works

Orca is an automated market maker (AMM) like Uniswap that launched in 2021 on Solana. AMMs rely on liquidity pools rather than traditional order books to execute decentralized trades. The liquidity pools are funded by users who deposit two tokens in equal proportion in exchange for a liquidity provider (LP) token that represents their claims to their share of the total pool, plus a portion of trading fees. Orca also launched Whirlpools (similar to Uniswap V3) that offers users the ability to select the lower and upper price ranges where they wish to provide liquidity on a specific pool (a.k.a. concentrated liquidity). Orca makes it easier by suggesting preset price ranges with different risk-reward profiles. Users can further stake their LP tokens to earn additional yield paid in native protocol rewards through the Orca's Double Dip feature.

How Orca makes money

Orca charges a 0.3% fee on all trades within a liquidity pool. Of this amount, 0.25% is paid to LPs as a reward for providing liquidity, 0.04% goes to the Orca treasury, and 0.01% goes to the Orca Impact Fund. For Whirlpools, the protocol charges 0.26% swap fees per trade and does not currently distribute fees to its treasury. For stablecoins, the trading fees are 0.07% per swap, with 0.06% going to LPs, 0.008% to the treasury and 0.002% for the Orca Impact Fund. The accumulated fees in the Orca treasury may be used to fund development, manage the token supply through buybacks, or other initiatives that support the long-term health of the Orca protocol.

How you make money on Orca

You can earn 0.25% of all trades on Orca by providing liquidity on the exchange. The protocol also earns 0.04% for every trade that is distributed to its treasury. This serves to accrue value to ORCA holders over the long term through potential fee distribution or token buybacks.

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Orca Pools
Orca SOL Market Making
2.2%
Yield
$34M
TVL
Risk
B
Protocol
Orca
Chain
Solana
Orca SOL-USD Market Making
8.5%
Yield
$4M
TVL
Risk
B
Protocol
Orca
Chain
Solana
Orca SOL-USD Market Making
30.1%
Yield
$2M
TVL
Risk
C
Protocol
Orca
Chain
Solana
Orca SOL Market Making
0.9%
Yield
$1M
TVL
Risk
C
Protocol
Orca
Chain
Solana

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