KEY TAKEAWAYS
- Orca has upgraded its Whirlpools Program by integrating Solana’s TokenExtensions, reducing costs for liquidity providers.
- The new feature allows for fully refundable rent on position NFTs, eliminating hidden fees and making liquidity provision more accessible.
- Developers can access these updates through the Orca SDK v0.13.8, enhancing user experience and DeFi accessibility.
- Orca’s upgrade facilitates cost-effective liquidity management, improving profitability for users.
Orca has announced a significant upgrade to its Whirlpools Program, aimed at reducing costs for users providing liquidity. By integrating Solana’s latest TokenExtensions feature, Orca now offers position NFTs with fully refundable rent, effectively removing hidden costs and making liquidity provision more accessible.
Previously, providing liquidity on Orca involved hidden expenses. Creating a position NFT required additional Solana accounts, leading to non-refundable rent and extra fees for metadata. These costs, approximately 0.017 SOL per position, accumulated quickly for users managing multiple positions or frequently rebalancing. This was particularly burdensome for active liquidity providers.
The integration of Solana’s TokenExtensions feature marks a pivotal change. Users can now create position NFTs without incurring the previously unavoidable fees, and the rent is fully refundable upon closing a position. This update makes opening a position through the UI 2.5 times more affordable than before, with users benefiting from 100% rent refundability when closing positions. This enhancement allows liquidity providers to manage and rebalance their positions without the concern of hidden fees diminishing their returns.
Orca has introduced two new instructions to support this upgrade. For developers utilizing the Orca SDK, these updates are incorporated into the SDK v0.13.8 release, ensuring seamless support for the new features. This upgrade underscores Orca’s commitment to enhancing the user experience and broadening DeFi accessibility.
By eliminating non-refundable fees, Orca facilitates frequent, cost-effective liquidity provision without hidden costs. This means every SOL invested in liquidity can yield better returns, with fewer fees impacting profitability. For more details on the update or to maximize savings with TokenExtensions-based position NFTs, users can reach out via Orca’s Discord channel. The community and support team are available to assist users in leveraging this upgrade.
For further information, the official announcement can be found here.
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