🐳Orca Liquidity Whirlpools

Documentation for adding concentrated liquidity to verified CMFI whirlpools on Orca.so

Orca offers liquidity providers to strategically place their deposits into a concentrated liquidity program called “Whirlpools.”

Unlike standard pools, liquidity providers in Whirlpools will compete for trading fees and token emissions, which are divided among liquidity providers according to the parameters of their deposits.

Due to the structure of Concentrated Liquidity and Leverage, users who set a tighter price range, around the current token price will receive a higher share of fees and incentives. They are, on the other hand, more vulnerable to Impermanent Loss (IL.)

You can learn more about the structure of whirlpools, risks, and its use of NFT representation by visiting the official Orca Whirlpool documentation here: https://docs.orca.so/faqs-and-troubleshooting/whirlpools-faqs

Creating Whirlpool Position

To add liquidity to a Whirlpool simply visit: https://www.orca.so/whirlpools/browse and search for the desired pair.

Click “Deposit” will enable you to set a price range for the deposited liquidity.

As a liquidity provider in a Whirlpool, you have three options to put your collateral to work. These are Active, Passive, and Custom. Price range options can be found below.

Understanding Price Ranges

Active - Determined by the price action from the last 30 days.

Passive - Determined by the price from the last 60 days.

Custom - A price range determined by the user.

You will be required to “Confirm Deposit” in order to commence. Here the Orca dashboard will provide you with a comprehensive breakdown of your deposit.

Once you have confirmed your deposit, you will receive a “Whirlpool NFT” to represent your share of the liquidity pool.

Withdrawing From A Whirlpool

To withdraw from an Orca Whirlpool simply visit: https://www.orca.so/whirlpools/browse and toggle “Portfolio.”

Here you will see all liquidity provided to Whirlpools. To remove the liquidity simply click on the “Balance” drop-down arrow. You will now be displayed with a comprehensive breakdown of your position.

If you scroll down you will see a “withdraw” option.

Click “Withdraw” and approve your transaction.

Your deposited liquidity should now be present in your Solana wallet.

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