Orca’s Whirlpools Boost Solana Ecosystem and Challenge Uniswap’s Dominance | Your Money

SINGAPORE, March 23, 2022 (GLOBE NEWSWIRE) — Leading Decentralized Exchange Solana (DEX) orca today unveiled its new concentrated liquidity offering, Whirlpools, bringing greater capital efficiency to the Solana ecosystem.

Eddies enters a beta phase today, offering market makers the opportunity to earn higher returns and benefiting traders with lower slippage across a selection of three trading pools.

The move means that starting today, market makers can select a specific price range in which to “concentrate” their liquidity in these pools in order to earn higher fees and rewards on that liquidity, where the term concentrated liquidity. This deeper liquidity, in turn, leads to better prices for swaps on these asset pairs.

Orca, which was designed to be the most accessible, secure and technically advanced decentralized exchange, plans to roll out vortexes to other trading pools in the coming weeks and months, and eventually expects to be able to offer tourbillons on all listed token pairs. on the exchange. In the future, Orca also plans to support permissionless listings, which will allow anyone within the Solana ecosystem to create their own Whirlpools.

Whirlpools uses a fully custom smart contract developed by the Orca team, which will be open-sourced in the near future to allow other teams in the Solana ecosystem to tap into this new, more capital-efficient source of liquidity.

Whirlpools are expected to offer much greater capital efficiency and can provide market makers with higher returns, although they are also subject to higher risks. Additionally, Whirlpools also offers a simplified and more user-friendly deposit and wallet UX compared to existing Concentrated Liquidity AMMs.

The deeper liquidity provided by Whirlpools reduces slippage costs, which means traders will be able to benefit from better prices on their swaps.

Yutaro Mori, co-founder and head of engineering at Orca, said he was excited to be able to bring this feature to Solana users.

“We know the community has been asking for Orca-focused liquidity for some time, and Whirlpools is providing it,” he said.

“I expect Whirlpools to thrive not only in blue chips, where we can expect hundreds of millions of daily trading volumes, but also in long-tail tokens, where there are hundreds of thousands of transaction volumes.

“I think Whirlpools will work incredibly well and become the place for people to trade any fungible token.”

Whirlpools are rolling out to Orca today, with rewards starting March 24. Initially, they are available in three trading pools (MSOL-USDC, SOL-USDC and ORCA-USDC). You can learn more about Orca’s Average.

The advantage of Whirlpools is that instead of earning fees over a theoretical price range between zero and infinity, as in the constant product model used by most AMMs, liquidity providers can concentrate their deposit so that it is only used when the asset price falls within a given range, earning higher fees for each applicable trade.

While Ethereum users have enjoyed the concentrated liquidity available to them for months through Uniswap v3, Solana users have had much more limited access, but will now be able to benefit from Orca’s user-centric DEX.

There are also a number of other differences with Uniswap v3, including:

Lower transaction fees on Solana, allowing LPs with much lower deposit amounts. Yield farming embedded in the core smart contract. A simpler and more guided liquidity provision experience (e.g. Orca will show the estimated APR and offer both and custom price ranges).

The Whirlpools beta will last at least two weeks and is only available to Orca’s owners NFT Orcanauts Collection.

Along with Orca’s mission to provide a user-friendly and capital-efficient decentralized exchange on Solana, the team is committed to supporting impactful causes. In addition to a donation of over US$960,000 to fund a crypto and DeFi education curriculum in partnership with financial education non-profit Aflatoun, Orca also donates a portion of all exchange fees to charities focused on climate change and sustainability through the Orca Impact Fund. The first donation of over $1 million, representing accrued fees through December 2021, is expected to go to Ocean Conservancy.

About Orca Orca is the DEX you can trust, with a commitment to providing a top-notch user experience for market makers and retail traders. Through all their efforts, Orca aims to be the go-to automated market maker protocol for the Solana ecosystem.

For more information about Orca, visit www.orca.so or visit their Twitter at twitter.com/orca—so.

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