ORCA is a Solana token that governs the Orca decentralized exchange. Orca aims to enable low-fee, near-instant token swaps using an automated market maker (AMM) model. On the exchange, users supply tokens to “liquidity pools” and algorithms set market prices based on supply and demand. ORCA can be used to vote on the future of the protocol.
What Is Orca (ORCA)?
Orca is a platform for cryptocurrency exchange on Solana. Solana is a decentralized blockchain designed to provide the world with scalable, user-friendly applications. The Orca platform allows users to trade tokens with lower transaction fees and latency. Users can also earn a part of trading fees by providing liquidity to the trading pool.
ORCA is the platform's utility and governance token. The platform intends to deprecate existing liquidity pools, which pay a flat 0.3 percent to liquidity providers, and establish new pools with lower fees structure. The collected fees are used to fund development, regulate the token supply via buy-backs, and support other activities that maintain the Orca protocol. Orca’s primary goal is to gradually decentralize the protocol by distributing ORCA to liquidity providers via yield farming. Yield farming is a DeFi investing method. It entails lending or staking cryptocurrencies or tokens in exchange for transaction fees or interest. The Orca Treasury is a decentralized autonomous organization (DAO) that binds the ORCA token value to the platform. DAO is a developer-created organization that automates decisions and makes cryptocurrency transactions easier.
According to its whitepaper, the platform aims at designing for people rather than programs. The network intends to make trading on Solana easier and more human-centered. Defi users have found it challenging to recognize whether a given pool is currently offering a fair price or not. Orca's Fair Price Indicator helps save the time-consuming comparison with trackers or other exchanges. When users enter a trade on Orca, the platform checks to see if both of the following criteria are met:
Since most Ethereum AMMs don't provide a mechanism to verify balances without using a browser extension, there's a Tokens panel included within Orca. Users can check the balances of all tokens listed on the platform and live updates when a trade is made or liquidity is provided.
History Of Orca (ORCA)
As per the whitepaper, Yutaro Mori and Grace Kwan co-founded the Orca platform in 2021. Yutaro is a software developer with experience in the sector who is attracted by both cryptography and economics. Kwan has expertise in engineering, design, and writing, and she specializes in transforming complex technical systems into user-friendly products. The total supply of Orca token stands at one hundred million ORCA.