Orca’s New Upgrade to Token Extension-based Position NFTs
Orca has rolled out a major upgrade to its Whirlpools Program, making it even more cost-effective for users to provide liquidity. By integrating Solana’s latest TokenExtensions feature, Orca is now able to offer position NFTs with fully refundable rent, removing hidden costs and making liquidity provision cheaper and more accessible.
Here’s everything you need to know about this upgrade and how it will save you money.
The Cost Problem: What You Paid “Before”
In the past, providing liquidity on Orca came with hidden costs. Whenever you created a position NFT to represent your stake, additional Solana accounts had to be created, resulting in non-refundable rent and additional fees for metadata. These costs could not be reclaimed, which made liquidity provision expensive, especially for users managing multiple positions or rebalancing frequently.
For each position, users were charged around 0.017 SOL in total costs — small amounts that quickly added up for active liquidity providers. This was especially inconvenient for users looking to rebalance or manage multiple positions frequently, as each new position came with its own unavoidable charges.
The Solution: “After” with TokenExtensions-Based Position NFTs
Orca’s integration of Solana’s TokenExtensions feature changes the game. With TokenExtensions, users can now create position NFTs without incurring the previously unavoidable extra fees, and the rent can be fully refunded upon closing a position.
Key Benefits of the Upgrade:
- Reduced Cost for UI Users: Now, the total cost for opening a position has dropped to 0.0088 SOL — that’s 59% cheaper than before.
- Fully Refundable Rent: Users can now reclaim the full rent upon closing a position, providing complete cost efficiency.
- Improved Cost Control: With full refundability, users have greater control over their expenses, with only minimal network fees remaining.
The “Before” and “After” Snapshot
Here’s a quick overview of the cost savings and refund improvements that come with this upgrade:
In short: Orca’s new update makes opening a position through the UI 2.5x more affordable than before, with users now enjoying 100% rent refundability when closing positions. This means liquidity providers can manage and rebalance their positions without worrying about hidden fees eroding their returns.
What’s New? Simplified Instructions and Improved User Experience
Orca has introduced two new instructions to support this upgrade:
open_position_with_token_extensions: This instruction allows users to create position NFTs without any non-refundable rent or extra fees. Users can even initialize built-in metadata if they prefer.close_position_with_token_extensions: This instruction allows users to close their position while reclaiming all rent costs, ensuring that liquidity provision is fully cost-efficient.
For developers using the Orca SDK, these updates are now integrated as part of the SDK v0.13.8 release, offering seamless support for the new features.
Why This Matters to Orca’s Liquidity Providers
This upgrade demonstrates Orca’s commitment to improving the user experience and making DeFi accessible to more people. By removing non-refundable fees, Orca is making it easier for users to engage in frequent, cost-effective liquidity provision without hidden costs. Now, every SOL you invest in liquidity can work harder, with fewer fees eating into your returns.
Questions? We’re Here to Help!
If you have any questions about the update or how to maximize your savings with TokenExtensions-based position NFTs, feel free to reach out on our Discord channel. Orca’s community and support team are here to help you make the most of this exciting upgrade!
