In a constantly changing decentralized finance space, automated market makers star in token trade as well as in liquidity bootstrapping. On Solana, where speed matters above all with fees kept low, a string of DEXs are regulars, including Jupiter, Raydium, and, increasingly, Orca.
Orca is an extremely user-friendly AMM on the Solana network with a simple dashboard augmented with features such as concentrated liquidity in the form of a CLMM, stablecoin, and low-slippage swapping. In our tutorial for beginners, we discuss reasons for choosing Orca as well as reasons for its gaining popularity among retail traders as well as among liquidity providers.
What is Orca?
Orca is a decentralized exchange for the Solana network. It uses a Concentrated Liquidity Market Maker strategy, as with Uniswap V3, in that users can offer liquidity in a less costly manner within designated ranges for prices.
But Orca is not formulas and calculations only. It has been made simple. Intuitive UI in a platform, simplicity in liquidity features, and fair price utilities are a few reasons for making Orca a very beginner-friendly platform in Solana.
Key features include:
- Low fees and fast execution, thanks to Solana’s low-latency architecture
- Minimal slippage, often under 1%, with clear warnings via the “Fair Price Indicator”
- Strong liquidity support for Solana-native tokens and stablecoins
- Magic Bar, a smart trade input tool that helps users place trades more easily
What Makes Orca Different?
Orca is built natively on Solana, and it’s optimized to deliver a smooth experience whether you’re trading, providing liquidity, or exploring new tokens.
Key advantages:
- Fair Price Indicator: Alerts users to large slippage or pricing gaps
- Whirlpools: Orca’s version of concentrated liquidity pools that enable custom price range strategies
- TVL strength: As of early 2024, Orca maintained one of the highest total value locked (TVL) among Solana DEXs, according to DeFiLlama
Understanding Whirlpools: Orca’s Concentrated Liquidity Model
Orca’s Whirlpools are its answer to capital-efficient AMMs. Instead of providing liquidity across the entire price spectrum (as in traditional AMMs), users can choose a specific price range—which means their funds are used more effectively.
This gives LPs the potential to earn higher yields, but it also comes with increased impermanent loss (divergence loss) risk if the token price moves outside the chosen range.
Key points:
- Liquidity positions are represented as NFTs instead of LP tokens
- These NFTs can be traded on secondary markets
- If liquidity is removed from the pool, the NFT can either be kept (as a record) or discarded
Whirlpools also introduce leverage-style exposure, which means users can focus on tight price bands to maximize fees—but should be aware of the risks involved.
What is the ORCA Token?
- Token Name: Orca
- Ticker: ORCA
- Standard: SPL (Solana)
- Contract: orcaEKTdK7LKz57vaAYr9QeNsVEPfiu6QeMU1kektZE
- Total Supply: 100,000,000 ORCA
Token Utility:
- Governance: Holders can vote on Orca protocol changes
- Liquidity Incentives: ORCA is used to reward LPs in certain pools
Token Allocation:
- 66.1% for the community, liquidity mining, and airdrops
- 20% to the team
- 13% for fundraising
- 0.9% for advisors
What’s Coming Next?
Orca’s team hasn’t published a detailed roadmap recently, but upcoming updates are expected to improve usability further. Some features teased include:
- Real-time price charts and trade history
- Enhanced error handling and trade preview tools
- Profile-linked NFTs for user identity
- UI improvements geared toward gamers and DePIN users on Solana
Rather than compete with Ethereum-native DEXs, Orca aims to focus on new use cases unique to Solana—including gaming, decentralized infrastructure (DePIN), and other unexplored frontiers.
Meet the Team
Orca was developed with support from the Solana Foundation and was co-founded by:
- Yutaro Mori – A former UMA smart contract developer with a finance background
- Grace Kwan – Orca’s Head of Product, known for simplifying DeFi UX
- Michael Hwang – First hire at Orca, previously at Google and early-stage startups
Backers and Investors
Orca has raised funding from some of the most respected names in crypto VC:
- Polychain Capital
- Three Arrows Capital
- Placeholder
- Jump Capital
- Coinbase Ventures
- DeFiance Capital
- And many more
These partnerships have helped Orca expand its product suite and grow its liquidity base across the Solana ecosystem.
Final Thoughts
Orca is more than just another DEX on Solana—it’s an entry point to DeFi for a new wave of users. With its clean interface, concentrated liquidity pools, and forward-thinking design, Orca makes it easier for everyday users to engage with DeFi without feeling overwhelmed.
Whether you’re a new trader looking for simple swaps or a liquidity provider aiming for capital efficiency, Orca offers a compelling, user-first experience.
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