Add ORCA as collateral for Jet Protocol

Hello Jet community!

I’m Milan from the Orca team and we’d love to apply to add ORCA support on Jet’s markets. Please feel free to ask any questions and the Orca team would be happy to answer!

Orca is one of the first general-purpose AMMs launched on Solana. Users can swap assets, provide liquidity, and earn yield through an easy-to-use interface. Projects can use Orca as a money-lego to easily integrate swapping, farming, or on-chain data into their dApp. Orca strives to provide easy and effective financial tools for everyone, bringing DeFi to the masses.

Collateral Asset Profile:

  • Collateral Name (and symbol): ORCA
  • Collateral Short Description: Governance token for the most user-friendly DEX on Solana.
  • Total Value in Circulation: 14.7M ORCA
  • Total Value on Solana: 14.7M ORCA
  • Price Oracle Feeds: https://api.orca.so/pools, CoinGecko, others coming soon

Proposal:
ORCA is the governance token for the Orca Protocol. ORCA tokenholders will govern the Orca Treasury and Orca DAO, which may be used to fund development, manage the token supply through buy-backs, or other initiatives that support the long-term health of the Orca protocol.

We believe ORCA will be a strong asset with high utilization on Jet. This is based on strong utilization across other borrow/lend platforms on Solana.

Use Cases:

  • Liquidity Providers: borrow additional ORCA to manage their existing positions or add leverage
  • Traders: borrow ORCA to increase exposure or to use as collateral elsewhere
  • Holders: lend ORCA to earn additional yield on their holdings
  • Existing high utilization rate on platforms like Solend, Apricot, Francium, and Tulip

Relevant Metrics:

  • Total Value In Circulation: 14.7M ORCA in circulation ($53M mkt cap as of Feb 7, 2022)
  • Total Value Locked: 497M in the Orca Protocol (as of Feb 7, 2022)
  • Age of Asset: 6 months since TGE (Tokenomics, launched August 9, 2021)

Risk:

  • Technical Risk: there is smart contract risk in the scenario a bug is identified in either the token swap or liquidity mining contracts. The Orca team is engaging auditors to mitigate these risks.
  • Liquidity Risk: there is currently ~$60M in existing liquidity for ORCA pools on orca.so. This liquidity is crucial to maintain in order to allow orderly liquidations for borrowers.
  • Price Feed Risk: currently ORCA prices are provided by the Orca API and other price aggregators like CoinGecko. There will soon be additional, more resilient price feeds such as Pyth. There is risk in any price feed in the case it fails to provide or provides incorrect information.
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Welcome to the Jet forums, Milan and Orca! And thank you for submitting the collateral application.

The collateral onboarding process is evolving. For more information please see the post here: Introducing Jet Protocol’s Collateral Onboarding Framework

Once the DAO has begun reviewing the submissions, we will follow up in this thread. Thanks again!

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Great to see another application come in before the governance module goes live!

Do you plan to have Orca accessible on Pyth at some point?

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Hey @jrmoreau, thanks for the question :slight_smile:

Yes, we are evaluating adding Pyth support and should at some point have a price feed for all Orca markets.

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