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What is Orca The DeFi Decentralized Exchange Now In The NFT Space [Solana Series]

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Welcome to the New to Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto and don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the Trading Center and the Lifestyle Dezign Studio. Here’s your host Crypto Travels Michael.

Hey, welcome to today’s show. Did you know one year ago today, Bitcoin was 18,700 per token. Currently today it’s trading it in the neighborhood of 55,000. I’m excited about the future of crypto and where things are going. And today is another one in the Solana a series, it’s all about Orca, the dex the decentralized exchange. So without further ado, let’s jump into it. What is Orca? Orca describes itself as a human centered automated market maker AMM protocol. The platform has become one of the most popular within Solana’s decentralized finance DeFi ecosystem. The protocol is also one of Solana’s first dexes to explore non fungible tokens or NFTs. Orca has its own liquidity pools. According to DeFiLlama, Orca is currently Solana’s eighth largest DeFi by total value locked, or TVL. The platform has experienced over $750 million in trading volume since its launch, according to its founder, one of the platforms main attractions is that it offers a simple user experience and it’s also more simpler than other decks is in the industry, the co-founder states, “our exchange experience significantly improves on what already exists on DeFi through our fair price indicator, magic bar, built in token balances, and more” Kwan says.

So let’s unpack and break down some of the benefits and features. Let’s go for the swap. Orca allows market participants to swap tokens using its own pool. It does not use Serum as a source of liquidity. Similar to other AMMs, LPs can contribute liquidity to Orca’s pools and receive a part of the trading fees as rewards. A set of liquidity pools will become Aqua farms. Not all of the pools but a set of them will become Aqua farms. Currently, liquidity providers in Orca’s pools earn trading fees. In contrast, liquidity providers in Aqua farms will earn both trading fees and Orca tokens. Orca also plans to add a functionality that will allow other projects to add their own tokens as rewards in the future. I’d be really interested to see that in the future. I’m going to follow this project. Regarding that, Orca uses the token swap smart contract which is fully audited and available for anyone to integrate with communities, projects and market participants can freely create and trade on custom Orca pools. Since Orca is built on Solana. The speed and low fees come the benefit of the speed and low fees come with the project. So Orca allows lightning fast swaps and low fees.

This Solana network boasts 400 millisecond block times 50,000 transactions per second up to that is and the average transaction fees is point 001. So a tiny portion of a US cent, essentially just a percentage. Let’s break down the fair price indicator. When you make a trade on Orca, they check whether both of the following conditions are true. The rate is within 1% of the listed market rate on coin Gecko and the slippage is less than or equal to your tolerance setting. And by default it’s set to 1%. And if you’ve used dexes for any length of time, then you’re very well versed in what slippage is and how it is a benefit if we can minimize slippage in the future. So Orca is making great strides in this area. Let’s break down their token balances. In most AMMs on Ethereum, there’s no way to check your bank without having to open up a browser extension, this feels like an obvious gap when it comes to the UX, which is why they’ve added a tokens panel directly into the Orca interface. There you can see your balance for all tokens listed on Orca, including live updates when you make a trade or if you provide liquidity. Crypto is becoming increasingly integral part of the world’s economy. And the Orca team believes that DeFi offers the opportunity to create a more equitable status quo. For that reason Orca is targeting the gradual decentralization of the platform over a three year period of time. So let’s break down what is the future what is what does the future hold for Orca?

Orca is looking to implement the following features in the near future: integration of wormhole, a cross chain bridge between Ethereum and Solana, which is awesome, collectible valueless tokens for early adopters, additional trading pairs which I’ll be very happy to see analytics for price liquidity volume fees and more in language options in the Orca UI. So who are the founders of Orca? Yutaro Mori is one of the co-founders, and Grace Kwan, aka Ori, that spelled O-R-I; is the other co-founder and head of product. By the way, as I mentioned earlier, Orca has its own token it’s called Orca token, ORCA, and it’s their native token on the platform and has an important role within the ecosystem. Orca has the following uses: number one, utility liquidity providers earn a portion of fees in exchange for the opportunity cost of providing capital or impermanent loss. Number two is governance. Token holders can be part of the governance system. One key purpose of the ORCA token is to accelerate the creation of value. So projects can compete in a rapidly growing ecosystem. So I hope today’s episode has enlightened you in shed some light onto what is the Orca project? What is the dex, decentralized exchange Orca on Solana. If you would like to reach out to me, you can email me at show@newtocrypto.io. Until tomorrow, make it a great day.

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By: cryptotravelsmichael
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Table of Contents

Welcome back to another podcast episode! In this discussion, we’ll be going over Orca, a DEX attempting to be more user-friendly – ‘built for humans’ – than be program-friendly. Let’s get into it! 

What Is Orca DEX? 

Orca is a Solana-based AMM DEX with its own liquidity pools. The Orca team believes that, compared to orderbook-based exchanges on Solana, the simplicity and composability make it the better solution.

Orca makes use of the token-swap smart contract, which has been thoroughly vetted and is open to anyone to utilize. Custom Orca pools can be created and traded freely by communities, projects, and market participants.

Orca is a cryptocurrency built on the Solana blockchain that allows for lightning-fast swaps and cheap fees (one-second settlement, $0.00002 gas fees). The 0.3 percent trading charge is automatically deposited into liquidity pools by LPs following each exchange.

Orca has three main functionalities:

  • Swap: Orca uses its own pool to enable market participants to swap tokens. It does not rely on Serum for liquidity.
  • Liquidity pools: Like other AMMs, LPs can offer liquidity to Orca’s pools in exchange for a portion of the trading costs.
  • Aquafarms – Yield Farming Program: Aquafarms will be formed from a subset of liquidity pools (not all of the pools). Liquidity providers in Orca’s pools currently earn trading fees. Liquidity providers in Aquafarms, on the other hand, will receive both trading fees and ORCA tokens. Later on, ORCA intends to introduce features that will allow other projects to add their own tokens as prizes.

What Makes Orca Different? 

  1. Token Balances

There is no way to verify your funds in most Ethereum AMMs without using a browser extension. This appears to be a UX gap, which is why we’ve included a Tokens panel straight into the Orca interface. You can see your balance for all of the tokens listed on Orca there, as well as live updates when you trade or offer liquidity.

  1. Fair Price Indicator 

We check whether both of the following requirements are true when you enter a transaction on Orca:

On CoinGecko, the rate is within 1% of the current market rate.

Slippage is less than or equal to the tolerance level you’ve specified, which defaults to 1 percent. 

If that’s the case, you’ll see the huge green checkmark above and can proceed to Exchange with confidence. If not, you’ll see a Rate Warning or Slippage Warning so you can decide whether or not to trade.

If you've used dexes for any length of time, then you're very well versed in what slippage is and how it is a benefit if we can minimize slippage in the future. Orca is making great strides in this area.

- Crypto Travels Michael

Here's What We Discussed in Detail in This Interview

  • What is Orca
  • Benefits and Features
  • Founders
  • The ORCA token

Killer Resources

HOW TO REACH TO CRYPTO TRAVELS MICHAEL

Final Thoughts

Orca has grown rapidly since its start in February, particularly with the sale of its token in August. In August 2021, the protocol’s total value locked grew fourfold, putting it in seventh place among the Solana chain’s top TVL projects.

Orca’s stable swap feature will use the same technology as Curve, but on the Solana blockchain, according to the team’s first AMA.

The team also clarified that they have no plans to integrate Serum/Raydium liquidity, although they do anticipate that liquidity will increase over time as Orca’s features mature. It will be fascinating to see what these characteristics will be in the future.

The New to Crypto Podcast is designed to guide you through the crypto landscape with pinpoint accuracy. New episodes are added daily. Be sure to subscribe to the podcast and listen to all of the episodes to help you in your cryptocurrency journey.

I’d love to hear from you! Email me at show@newtocrypto.io and let’s chat.

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