Orca Reimagines Liquidity Pools With Whirlpools Launch

Liquidity providers who set a tighter price range will receive a higher share of fees and incentives but are more vulnerable to impermanent loss.

A New Era for DEXs and AMMs

Orca launch Whirlpools, concentrated liquidity pools that improve the protocol’s capital efficiency and swap prices.

The decentralized exchange (DEX) announced the new pools on April 25 via Twitter. Whirlpools are liquidity pools where liquidity providers earn a higher yield for providing liquidity for a token pair in a specific price range—instead of for any price. This way, users who use the exchange can enjoy an improved trading experience, as they enjoy more liquidity and better prices. However, the tighter the range, the higher the risk of impermanent loss for liquidity providers.

“Today, we’re officially opening up deposits to the entire Solana ecosystem. (Builders can also start integrating using the Whirlpools SDK!) We’re proud to achieve this key milestone on our journey to become an Apex AMM,” wrote the team in the announcement blog. “To celebrate the official launch, we’ll also be listing seven new Whirlpools, all with built-in Double-Dip rewards!”

Details: Orca Reimagines Liquidity Pools With Whirlpools Launch