Our 3-Step Journey to Apex AMM
How we’ll make Orca the go-to AMM for the Solana ecosystem
How might we grow Orca into an apex predator of AMMs?
Whaley nice of you to ask! From Orca’s earliest days, our 3-step plan has been to build an AMM that is…
- Easy-to-use (to build a user base)
- Capital-efficient (to dominate the market)
- Incentive-optimized (to achieve sustainability)
Step 1: An easy-to-use AMM
Step 1 is to build a user base by building a product that people love to use. Most anyone reading this will be familiar with our focus on human-centered design, and based on the feedback from our community and ecosystem partners, we feel pretty good about checking off this step. 😉 (We love you too, podmates!)
Step 2: A capital-efficient AMM
Step 2 is all about growth: Increasing Orca’s market dominance, which we measure via trading volume on Orca. Volume increases when more users choose to trade on Orca, which comes from the combination of better UX (step 1) and better rates… which is where Step 2 comes in:
Very soon (in weeks, not months!), we’ll be able to share the next generation of Orca:
Whirlpools: A brand-new, more capital-efficient AMM that will give LPs the opportunity to compete for higher yields and improve rates for traders.
We believe that this is the natural next step for AMMs, which will eventually allow Orca to power the majority of trading volume on Solana. So, what happens next? The answer is a shift in focus — from aggressive growth to sustainable growth.
Step 3: An incentive-optimized AMM
Surviving in a rapidly changing environment requires adaptation, regardless of whether you’re an animal or a DeFi protocol. Even if Orca achieves market dominance, maintaining it requires contributors to be fairly rewarded for their contributions to the protocol.
We believe that as Orca’s governance evolves, tokenholders will have much more flexibility in how they use the Orca Treasury to align incentives for everyone involved in the Orca ecosystem.
What might those incentives look like? One popular request is for Treasury Staking, which would enable tokenholders to stake their $ORCA to earn Treasury fees, similar to SushiSwap’s xSUSHI. (0.04% of each trade goes to the Treasury, and 0.01% of each goes to the Impact Fund, which are visible at this address: 2YM8LrJGRtsDcWeqsjX2EQwJfhArxyDdtDzgt7vrwwbV)
Ultimately, it’s up to the community to decide!
We have a clear plan for how to make Orca the go-to AMM for the Solana ecosystem. In this, we take a long-term view. (Good things take time!) 😉
A few fun facts to illustrate our growth over the past 6 months:
- 3x growth in tokenholders: The $ORCA token was airdropped to ~10,000 wallet addresses on August 9th, 2021. Aquafarms, our yield farming program, started two days later. Since then, the community of tokenholders has grown to over 35,000 (see the $ORCA address here).
- 2.7x increase in $ORCA in circulation: Our initial airdrop consisted of 5,000,000 $ORCA to existing users of the protocol. There is now $13,500,000 $ORCA in circulation (~13.5% of total supply) in the hands of our community, bringing us closer to decentralization.
- 7x trading volume in 6 months: On August 15th, we shared an exciting milestone: $15M in daily trading volume. Since then, our daily average trading volume for the past 90 days has ballooned to ~$115M. We’ve also welcomed tens of thousands of new traders and liquidity providers to the platform.
Want to dive deeper into the Orca community? Join our Discord and give us a wave!
Disclaimer: Any forward-looking statements contained in this post are based upon believed reasonable assumptions and plans, though there can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.