Providing liquidity on Orca has never been smoother!
We’ve launched two new updates that significantly improve the way users provide liquidity on the platform. These updates provide an improved experience for Orca’s core users — new token creators and liquidity providers (LPs), regardless of their level of experience.
Meet the new Splash Pool feature and an updated pool creation flow!
Let’s dive deeper into how Orca’s community can benefit from these updates 🐳
Splash Pools for Dedicated Full Range LPing
What are Splash Pools?
Orca’s new Splash Pools make the creation of dedicated full-range pools more similar to the traditional and familiar constant product AMM (CPMM) model.
Splash Pools allow users to provide liquidity to Orca without the need to understand the complexities of a CLMM (Concentrated Liquidity AMM), making the platform more user-friendly and accessible to LPs of all experience level.
It’s important to understand that Splash Pools are not a straight replacement for constant product pools. Instead, they offer several unique differences:
- Multiple Full Range Positions: Unlike traditional CPMMs like Uniswap V2, where users are restricted to a single full-range position, Orca allows users to maintain multiple full-range positions simultaneously. This flexibility provides users with greater control and options in managing their liquidity.
- Unique Representation of Positions: In CPMMs, positions are represented by fungible LP tokens. In contrast, Orca’s Splash Pools represent positions with NFTs. Even if the price ranges are identical, each token is unique, allowing for multiple distinct positions to exist concurrently.
- Manual Yield Harvesting: Unlike CPMMs, where yields are auto-compounded into the LP’s position, Splash Pools require LPs to manually harvest their yields as trading fees accrue separately from the position’s liquidity. The advantage of this system is that fees can be collected separately without altering the position, this can be beneficial from a tax planning perspective ensuring yields and capital gain events are kept separate since each harvest is a taxable event.
Enhanced Pool Creation Flow
Our new and improved pool creation flow is designed to provide a seamless user experience.
The upgraded process aims to be more intuitive for new token creators, advanced LPs, and experienced users with Orca’s pool creation tool while maintaining the same functionality as before. The key improvement in the new flow is its step-by-step process, ensuring users are well-informed at every stage. Additionally, new pools will be displayed much faster!
*Note: There is currently a slight lag in newly created pools appearing on Orca’s UI. Our developers are working on it, and an update will be released in the next few weeks.
How to guide : Create New Liquidity Pools on Orca
Orca offers users the ability to create two distinct types of liquidity pools: Splash Pools and Concentrated Pools. Each type of pool serves different needs and skill levels, ensuring that both novice and advanced users can participate in the liquidity provision process effectively.
- Splash Pool: Designed with simplicity in mind, Splash Pools are perfect for new token creators and novice users seeking a straightforward way to provide liquidity. The creation process is streamlined and user-friendly, making it an ideal starting point for beginners.
- Concentrated Pool: For more experienced users, Concentrated Pools offer advanced features and greater control. This type of pool requires a deeper understanding of liquidity provision and allows for more precise management of assets. It’s tailored for users who are looking to maximize their returns through strategic positioning and active management.
In this guide, we’ll walk you through the steps to create both types of pools, providing detailed instructions and tips to help you get started. Whether you’re a new token creator or an advanced liquidity provider, you’ll find the guidance you need to navigate Orca’s pool creation tools effectively.
1) How to Create Splash Pools
Here’s a step-by-step guide to help you create a Splash Pool on Orca effortlessly:
Step 1: Connect your wallet and head to Create Pool page
- Go to Orca’s Create Pool Page and connect your wallet.
- Make sure you have a small amount of each token in the planned pair, as well as enough $SOL to pay network fees, in your wallet.
- Click on “Create Pool” button on the top right corner.
Step 2: Select “Create Splash Pool” option and choose your Token Pair
- On the Create Pool page, select the Splash Pool option
- Next, select your base and quote tokens. Click “Select Token” and enter the symbol, name, or mint address of your token.
- The token will be paired with SOL by default. If you prefer another token, click on the SOL label and select your desired token.
Step 3: Set Initial Price and Token Amounts
- Input the initial price manually or use the built-in market price estimation provided by Jupiter. Verify this price carefully, as it sets the initial trading price and cannot be edited later.
- Enter the number of tokens you wish to supply into the Splash Pool. The corresponding amount of the paired asset will be calculated automatically.
Step 4: Preview and Authorize Pool Creation
- Click Preview Pool to review all parameters.
- Ensure all details are correct. Read the highlighted message, mark the checkbox if you are satisfied, and then press the “Create Pool” button.
Step 5: Monitor and Manage Your Pool
- Review the details in your wallet and authorize the transaction.
- Once the pool is fully active, the Trade and Provide Liquidity buttons will become functional. Users can now see, trade against, and deposit to the pool.
- The pool creation process will be displayed. Once completed, your pool will be active on the Orca UI!
2) How to Create Concentrated Liquidity Pools
Creating a Concentrated Pool follows a similar process to creating Splash Pools, with a few key differences.
Concentrated Pools provide greater control over your liquidity provision by allowing you to:
- Select the price range for your initial deposit
- Select the fee tier of the pool
Here are the details for each of these differences:
Step 1: Select the Price Range of your Concentrated Pool
- Set the minimum and maximum price for your position. The tighter the price range, the more concentrated your liquidity will be.
Step 2: Select Fee Tier of your Concentrated Pool
- Choose the fee tier for your Concentrated Pool. This determines the percentage of fees that liquidity providers (LPs) will collect from every trade that occurs within your pool.
The rest of the pool creation process is the same as for Splash Pools.
Why Choose Orca?
Orca is the Solana ecosystem’s most trusted DEX, boasting an impeccable security record with no hacks to date. Renowned for its high usability, Orca features a simple and intuitive UX that caters to beginner, advanced and professional users, making it the go-to choice for anyone looking to engage in DeFi on Solana.
Orca’s dedication to innovation and user-centric design underscores its mission to become the leading provider of financial primitives on Solana. We envision a future where a significant portion of the world’s financial transactions is powered by CLMMs and other DeFi products, and our ongoing enhancements are critical steps toward realizing this vision.
These features highlight Orca’s commitment to making liquidity provision more flexible and accessible, empowering both new token creators and liquidity providers of all experience levels.
Stay tuned, as Orca continues to revolutionize the DeFi space, making it more inclusive, accessible, and efficient for everyone.
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Disclaimer: The content of this communication is not financial advice and should not be relied on by any persons as financial advice. This communication has not been provided in consideration of any recipient’s financial needs. We have not conducted any financial assessment based on the personal circumstances of any recipients. Before using the protocol, carefully review all relevant documentation and consider risks including total loss of funds.
