Orca is Uniswap V3 on Solana, Thanks to Open Source Code and Grants

Solana-powered Orca has a grants program, and its ready to award $225,000 to 11 projects building DeFi protocols in a bid to rival Ethereum

article-image

Source: Shutterstock

share

key takeaways

  • “We’re just on a lower-fee chain that functions very similar to Ethereum,” Milan Patel, head of business development at Orca told Blockworks
  • Ethereum remains the dominant blockchain for DeFi applications with a total locked value (TVL) of $34.1 billion

Orca, an automated market maker (AMM) on the Solana blockchain, has announced Wave 1 winners of its Whirlpools Builders Program

The first version of Orca was similar to Uniswap V2 — an AMM that allows liquidity providers (LPs) to facilitate trades at all prices.

Whirlpool, a “concentrated liquidity” feature launched in March this year, is similar to Ethereum-powered Uniswap V3, where LPs can choose a price range when they deposit their tokens, Milan Patel, head of business development at Orca told Blockworks. 

Concentrated liquidity means LPs can provide liquidity at any price range — allowing them to earn greater yields and traders to transact at lower costs.

“Similar to how there’s Charm, Gamma and Arrakis [on Ethereum], we want to build something similar for us on Solana,” Patel said. “We would like to improve the usability of Whirlpools, and extend their functionality.”

And so, Orca launched its funding initiative, the Whirlpools Builders Program, to entice protocols on Solana to use its concentrated liquidity pools and find new applications. In total, $225,000 in grants were given to 11 projects, including:

  • Tulip: a concentrated liquidity vault that reduces divergence loss and auto-compounds rewards.
  • Kamino: a vault that gives liquidity providers (LP) exposure to the benefits of concentrated liquidity without continuous rebalancing.
  • Investin: vaults with active liquidity provision executed by vault managers. LPs would be able to monitor activity through an interface that shows vault positions and performance charts.

“I think a lot of grant programs choose one protocol and give them a very large grant, but this is DeFi, everyone should get a grant and everyone should build and whoever executes the best, we will support them in getting more users. This is why we have 11 grants, even though they’re a little bit smaller,” Patel said.

Orca hopes the push to encourage builders to innovate through the Whirlpools Builders Program will bring more DeFi users to the Solana blockchain.

Currently, Ethereum remains the dominant DeFi blockchain, with total locked value (TVL) across its applications reaching $34.1 billion at the time of writing.

By comparison, Solana’s TVL sits at $1.44 billion, significantly less than its rival blockchain. Uniswap currently accounts for about 16% ($5.46 billion) of the TVL on Ethereum and Orca’s existing TVL is around 6% of Solana’s ($87.92 million).

Patel reasoned the Orca team operates more like their Ethereum counterparts than most Solana developers, as everything related to the project is open source, with a mind to build out the ecosystem through a grants program.

“There are a bunch of parallels between us and Uniswap V3,” Patel said. “We’re just on a lower-fee chain that functions very similar to Ethereum.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders