Orca Double-Dip Pool Guide
- 1.Provide liquidity Note: due to divergence loss, you are not guaranteed a positive return! Note: it is not possible to transfer your liquidity provision (LP) tokens and withdraw from another account!
- 2.Connect your wallet at the top right corner of the main screen.
- 3.Click Pools at the top left of the main screen.
- 4.Search or select the pool that you want to provide liquidity for
- 5.Click "Deposit."
5. Enter the number of tokens you want to Deposit in the pool as the following screenshot (you need to have the same two tokens in your wallet based on the pool). Click “Deposit” and then click “APPROVE” to complete the confirmation in your wallet.
⚠️ Note: The amount of tokens you need to stake may vary depending on the current market price. Also on this page you can see the APY based on the past 30 days.
When you finished, you'll see your liquidity information appear in the middle and upper part of the page.
If you want to Withdraw tokens from the pool, click the "Withdraw" button as the below image:
Then select the amount to Withdraw, click "Withdraw" and then click "APPROVE" to confirm the transaction in the wallet. At the same time, you can see the total number of tokens you can receive after the withdrawal (including both the liquidity token which you provided and the reward token).
If successful the tokens will be withdrawn in your wallet.
⚠️ Note: Make sure you have enough SOL in your wallet to cover the minimum requirements to make transfers on the Solana blockchain, if you’re getting an error might be caused by too low SOL balance.
Double-Dip pools are special Aquafarms that reward LPs with both ORCA and a partner project's tokens.
1. Provide Liquidity to an Aquafarm
⚠️ Note: it is not possible to transfer your liquidity provision (LP) tokens and withdraw from another account!
Follow the “How to Provide Liquidity Guide” to deposit into an eligible Aquafarm. After completing a deposit, you will now have Orca LP tokens in your wallet corresponding to the pool you've added liquidity to.
You can see eligible Double-Dip pools on the "Double-Dip" tab.
2. Double-Dip Orca LP Tokens
Click on the Double-Dip tab and find the Double-Dip pool you'd like to participate in. Click "Double dip" as per the screenshot below. Click “APPROVE” to complete the confirmation in your wallet. That's it! You are now earning dual-rewards.
⚠️ Note: Rewards can be manually harvested by clicking "Harvest" or all earnings will automatically be collected when removing liquidity from a pool.
3. How to Withdraw Tokens From a Double-Dip Pool
Click "Harvest & Undip" from the Double-Dip tab. Your Orca LP tokens will now be viewable in your wallet.Then simple follow the “How to Withdraw Tokens From a Pool” guide to withdraw liquidity from an Aquafarm.
When you deposit tokens in the pool you will be required to have for example:
If you want to have 200 LP in the NINJA/SOL pool it will consist of “X” amount of $NINJA tokens plus equally worth amount of SOL tokens, that depends of the current market prices at the moment you enter the pool, as presented in the picture below:
⚠️ Note: When you withdraw from the pool you will never get the exact same amount of $NINJA+SOL you’ve deposited in the poll, it will vary based on the current market prices, the values are not static.
What does IL means (Impermanent loss):
The more the token price at withdrawal diverges from the price when you deposited, the less your liquidity stake will be worth. Though this has historically been rare, large price swings could cause liquidity providers to lose money.
What does "Not Enough SOL" mean?
SOL is required to pay network fees. The actual fees are likely to be lower, but for simplicity, a small minimum balance of SOL is required to transact on Orca.
What fees do I pay when I exchange tokens?
- Liquidity provider fee: When you make an exchange, 0.3% of the trade value is paid to each liquidity pool involved in the trade. (e.g. A "Double-hop swap" from SOL -> USDT -> ETH would pay 0.3% on SOL -> USDT and another 0.3% on USDT -> ETH.) Later, this translates into earnings for liquidity providers.
The USDC/USDT stable pool has a trading fee of 0.1%, less than the other Constant Product pools.
- Network fee: A nominal amount of SOL is also required to pay Solana network fees on each trade. The amount varies depending on the exact parameters of the trade; when trading a token for the first time, more SOL is required to add that token to your wallet. In the past, we've found that most trades cost between 0.0001 — 0.001 SOL. Orca does not take any additional fees.
How does the Fair Price Indicator work?
When you enter a trade, there are two factors that determine whether we show a Fair price label:
- Is the price per token within 1% of the rate quoted by CoinGecko?
- Is the price impact caused by this trade less than 1%?
If either of those two conditions is not true, you'll see a corresponding warning in the UI. However, you can still trade after acknowledging the warning.
What is price impact?
The price you get on Orca depends on the size of the order. As the amount of tokens you buy from the pool increases, the price of the token increases as well. This increase in price is called price impact.
Which curves do your trading pools use?
Our pools use the Constant Product curve (x * y = k) popularized by Uniswap, as well as the stable curve popularized by curve.fi for Stablecoin pools (currently USDC/USDT).
Why should I provide liquidity on Orca?
Users can choose to provide liquidity to Orca’s pools in the hopes of earning money on trading fees. Let’s say you provide liquidity to the SOL-USDC pool. In return, you’ll receive a proportional share of SOL-USDC liquidity tokens.
Then, each time users exchange SOL for USDC or vice versa, 0.3% of the trade value goes into the pool. These fees accumulate over time, causing the pool to be worth more than the value of its deposits.
Later, when you redeem your liquidity tokens, you'll receive a proportional share of the pool in SOL and USDC, which includes any accumulated fees. (However, take note: due to divergence loss, you are not guaranteed a positive return!)
How do I earn fees on Orca?
The 0.3% trading fee automatically goes into the pool after every swap. These fees increase the amount of tokens that you get back when you withdraw liquidity. While you don't need to harvest trading fees, you can harvest ORCA rewards from eligible Aquafarms.
What are liquidity tokens?
Liquidity tokens represent a proportional share of a liquidity pool. For instance, if you contribute to the SOL-USDC pool, you will receive SOL-USDC liquidity tokens. If you have deposited liquidity, you can see these tokens in your Sollet.io wallet.
How are projected earnings and APR calculated?
Given a pool with a pool token supply, token A, and token B, we calculate the ratio: (token A * token B)^(1/2) / (pool token supply). This ratio increases when users trade against the pool, regardless of how the pool size changes. We sample this value every 10 minutes and use this sampled data to calculate how the ratio grows overtime. This allows us to project an APR value for any time period that we've sampled.
Can I withdraw my liquidity anytime?
Yes, you can redeem liquidity tokens for a proportional share of the pool at any time.
Why aren't stable pool pairs balanced like other pools?
The deposits and withdraws for stable pools are often imbalanced, but this is intended behavior.
Stable pools are designed so that the price remains relatively stable despite large imbalances in the pool. For example, the mSOL / SOL pool may have much more mSOL than SOL, but the exchange rate will remain close to even (e.g. 1 mSOL for 1 SOL). However, this means that liquidity providers will deposit and withdraw more mSOL than SOL since the amount they provide must be proportional to the amount of tokens currently in the pool.
This is in contrast to constant product pools where changes in the balance of the pool directly effect the price of the tokens. Since the balance of the pool is proportional to the price of the tokens, liquidity providers can generally expect the value of each token to be the same when depositing or withdrawing
Last modified 1yr ago