- “We’re just on a low-cost chain that works very similarly to Ethereum,” Milan Patel, business development manager at Orca told Blockworks.
- Ethereum remains the dominant blockchain for DeFi applications with a total value locked (TVL) of $34.1 billion
Orca, an automated market maker (AMM) on the Solana blockchain, has announced the winners of Wave 1 of its Whirlpools Builder Program.
The first version of Orca was similar to Uniswap V2 – an AMM that allows liquidity providers (LPs) to facilitate transactions 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 depositing their tokens, said Milan Patel, business development manager. at Orca at Blockworks.
Concentrated liquidity means that LPs can provide liquidity at any price range, allowing them to earn higher returns and allowing traders to transact at lower cost.
“Similar to how there is Charm, Gamma and Arrakis [on Ethereum], we want to build something similar for us on Solana,” Patel said. “We would like to improve the user-friendliness of Whirlpools and expand their functionality.”
And so, Orca launched its funding initiative, the Whirlpools Builders Program, to incentivize protocols on Solana to utilize its concentrated pools of liquidity and find new applications. A total of $225,000 in grants was awarded to 11 projects, including:
- Tulip: a concentrated liquidity vault that reduces divergence loss and self-composed rewards.
- Kamino: a vault that gives liquidity providers (LPs) exposure to the benefits of concentrated liquidity without continuous rebalancing.
- Investin: vaults with active provision of liquidity executed by vault managers. LPs would be able to monitor activity through an interface that displays vault positions and performance graphs.
“I think a lot of grant programs pick a protocol and give them a really big grant, but this is DeFi, everyone should get a grant and everyone should build and whoever performs best, we’ll help them get more users. That’s why we have 11 grants, albeit a 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 value locked (TVL) in its applications reaching $34.1 billion at the time of writing.
In comparison, Solana’s TVL is at $1.44 billion, significantly less than its rival blockchain. Uniswap currently accounts for about 16% ($5.46 billion) of TVL on Ethereum and Orca’s existing TVL is about 6% of Solana’s ($87.92 million).
Patel explained that the Orca team operates more like their Ethereum counterparts than most Solana developers because everything about the project is open source, with the goal of growing the ecosystem through a grant program.
“There are a bunch of parallels between us and Uniswap V3,” Patel said. “We’re just on a lower cost chain that works very similarly to Ethereum.”
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