Orca Treasury Report #2
All the latest updates on the Orca Treasury, Climate Fund, and the ORCA token!
It’s been a momentous several months since Orca’s first Treasury Report, and there’s plenty to explore in this second edition. From the Orca Treasury itself, to the tokenomics of ORCA and the Climate Fund, there’s something for everywhale! 🐋
Governing the Orca Treasury
As Orca continues its journey towards decentralization, passing control of the Orca Treasury from the Orca operating team to the Orca DAO is both inevitable and essential. Given the importance of this event, the Orca operating team and the Orca DAO have been exploring the best possible transfer process to pursue.
All podmates are invited to participate in Orca Governance. Both grants and Working Groups/subDAOs are on the agenda for the Orca Governance Council to tackle: Stay tuned as more opportunities arise for users to contribute to the Orca DAO in new and exciting ways!
Treasury and Climate Fund balances
The Orca Treasury continues to earn fees from Orca’s older ‘standard’ pools. These are pools following the constant-product model, and provide fees of 0.01% per trade on stable pairs and 0.05% per trade on all other pairs.
Orca’s concentrated liquidity pools (Whirlpools) only provide fees for the Orca Climate Fund, not the broader Orca Treasury. This is generally at a rate of 0.02% across each trade, however this can vary with the recent introduction of Community Listings, where users can select different fee-tiers when creating new pools. The decision to change fees on Standard pools or add fees to Whirlpools is a decision for the Orca Community, and will be decided through Orca Governance.
In total, at the time of writing the Orca Treasury has a value of around $3.5M from fees earned on trades. The Orca Climate Fund holds around $725K from fees earned on trades.
Breaking down the wallet addresses themselves, the primary wallet address for the Orca Treasury can be found here, while the primary Climate Fund address can be found here. These two primary addresses store funds converted from LP tokens in late July, as noted as in Orca’s first Treasury Report. During the late July conversion, LP tokens were converted into tokens for the Orca Treasury wallet, and into USDC only for the Climate Fund wallet.
Fees accruing to both the Treasury and Climate Fund from standard pools since late July have been held in one separate account which has yet to distribute assets accordingly to the two wallets. This account, holding fees which have yet to be distributed can be viewed here, with a balance of around $223K in LP tokens.
Holding fees in LP tokens leaves the Orca Treasury and Climate Fund exposed to market volatility and impermanent loss. The Orca operating team will soon be putting forth a proposal to ORCA tokenholders to vote on whether the Orca Treasury and Climate Fund should be periodically converted to stablecoins, and if so, how.
ORCA tokenomics and emissions
While Orca’s concentrated liquidity smart contract (Whirlpools) has already been double-audited by Kudelski and Neodyme, you can never be too safe in the wild frontier of crypto. That’s why Orca listed a $500K bug-bounty on ImmuneFi, to incentivise talented engineers to scour the contract for any potential risks. The maximum bounty would be payable in ORCA: 1M ORCA tokens have been reserved for this purpose, and this can be viewed on-chain here.
ORCA rewards continue to distribute ownership of the protocol to users and the community, and incentivize liquidity across several strategic token pairs such as SOL/USDC and ORCA/USDC.
Total ORCA emissions to date are around 19M of the 66.1M allocated to the community. From this allocation, 5.5M formed the initial air-drop, with less than 14M used as ORCA rewards on pools, and 1M reserved for the ImmuneFi bug-bounty.
Last but not least, the largest change to the Orca Treasury since the first report is Orca’s $550K donation to Ocean Conservancy from the Orca Climate Fund! Podmates can be very proud of this event, which proves how DeFi on Solana can have a positive impact on the real world.
With the donated funds earned entirely from trading fees, and going to a charity voted for by the community, Orca sets an example to the crypto ecosystem of how a protocol can deliver on its values at the on-chain level. The transaction was made possible thanks to Every.org, and can be viewed here (following a small test transaction here 😉).
While the outlook may look stormy for crypto right now, Orca’s values embodied by the community will set the protocol apart to ensure its longevity well into the future.
See you in 2023 for Treasury Report #3! 🪙
Disclaimer: The content of this communication is not financial, legal, business, tax, accounting, or other advice and should not be relied on by any persons as such advice. This communication has not been provided in consideration of any recipient’s financial needs. We have not conducted any assessments in relation to these issues based on the personal circumstances of any recipients. Each person should consult its own advisors as to legal, business, tax, accounting, financial, and other related matters concerning these matters in light of such person’s particular circumstances. Before using the protocol, carefully review all relevant documentation and consider risks including total loss of funds.