Full Solana Orca.so Liquidity Mining Crash Course – Metrix Finance Tutorial
https://www.youtube.com/watch?v=D8j9uzI2F_Q
Transcript:
Today, I’m going to be doing a deep dive into Orca, one of the largest concentrated liquidity decentralized exchanges on the Solana network. We’re going to do a full crash course, basically going over from start to finish how I discover, how I simulate, as well as how I actually track and rebalance my Orca liquidity pools. Let’s hop in.
Now, for the majority of this video, we are going to be using Metrix Finance simply due to the fact that we believe that this is the best liquidity pool tool out there. And a lot of the stuff that we’re going to discuss in relation to orca is going to be applied to a lot of other decentralized exchanges similar to some of the concepts that we use for uni swap as well as pancake swap and other decentralized exchanges can be applied to orca but if you guys don’t know what orca is essentially it’s a concentrated liquidity exchange on the solana network as i mentioned
earlier but what does that exactly mean that means that you can head over to their exchange, you can swap one asset for another asset. That means that we can sell our Sol for USDC or maybe buy Sol with USDC basically. And we can do that with other assets as well.
We could sell Radium for Sol or we could sell Orca token for Sol or Render token for Sol or maybe Sol for Pyth or something along those lines. We can just execute all of these different trades and it’s going to route us through an automated market maker liquidity pool. Now over on the Orca website, if you head over to liquidity, this is going to take you to V1 Orca, which means you’re going to see a screen somewhat like this, and it’s not going to be completely optimized.
There is a V2 version of this. It is actually not really well known. If you just simply replace the V1 in the URL with nothing, so orca.so slash liquidity, it will take you over to V2. Now, for this video, I’m going to be using V1 as well as I’m also going to be using metrix.finance pretty heavily. So we’ll head over there.
Now off the bat, we’re gonna see a list of liquidity pools sorted by their trading volume, we can choose to project this 24 hour yield over 365 days if we wish to do so. I personally like looking at big numbers and numbers over the course of a one year period, as opposed to a 24 hour period. So I’m going to use 365 days. But the thing is, this is just showing us the average APR. And even then it does only use 24 hours worth of data.
It does not use seven days or 30 days, only 24 hours, basically. So that’s where metrix.finance is going to come into play. And from here, I could just identify some pools that I think are solid. Like this sold to USDC one is very, very good. Same thing with sold to USDT.
But I also see stuff like jupe to sold that seems to have a good yield pups to soul. If we go down, we see with to soul JTO to GTO soul, and then some other assets. So instead of completely relying on this, I am going to head over to metrix.finance. But if we do see some pools right here on this liquidity section, we could just head right over to the simulation page on metrix.finance.
And we’re going to dive into this a little bit later on it’s just i do want to show you how exactly to discover pools on orca by using metrix and if you guys don’t know metrix is an aggregator for all your liquidity pool needs basically that means that’s going to bring in analytics from uniswap pancake swap sushi swap orca as well as radium on all the different networks that these exchanges are on ultimately the overall goal is to be able to see all this data in one central dashboard, identify the best opportunities, but also go and do a deep dive into those liquidity pools and discover some
information that you might not know just by looking over at their website. So I’m gonna head over to Orca on the Solana network. And then from here, what I like to sort by is not TVL. It’s not average volume over the past 24 hours. It is actually the fee to TVL ratio. Basically, I’m looking at stuff that has high fees compared to the overall TV of the pool.
Like for example, this pool has $400,000 in TVL, yet its average daily fees is roughly $30,000. That is much better than something that has roughly $2 million in TVL, but its average daily fees is 20 bucks. You know, so obviously we want to go and look at stuff that has that high fee to TVL ratio.
Now off the bat, what I am going to say is some of these are going to be meme coins. Right now there’s a lot of meme coins blowing up over on the Solana network. I personally do not like to invest heavily into meme coins, mainly due to the fact that I do feel like they end up declining over time. What I do like to invest into is high utility assets or assets that have a use case in decentralized finance and are going to grow as their platforms grow.
So one of them could be wormhole token. As the wormhole ecosystem grows, I expect the wormhole token to grow. So maybe I want to deploy into that liquidity pool. But occasionally I will take some risk, hop into some super high yielding liquidity pools just with a couple thousand dollars just to see what exactly is going to happen. And sometimes I’ll make some good money. Other times I’ll lose a little bit.
Overall, I do end up coming out on top. But yeah, that’s why I like to invest in the high utility assets. So off the bat, I am going to favorite Wormhole. I’m going to favorite this Nub one. I’m also going to favorite this Zeus one. And ideally, what you would be doing is also cross-referencing over on CoinGecko what exactly these assets are.
So that way you can learn more about the assets as you’re kind of going down this list. There’s also stuff like sold to usdc which isn’t a bad opportunity whatsoever so do keep that in mind and there’s also going to be stuff like sold to usdt or sold to chat chat is sold chat basically and this has a pretty big use case actually on the salon network so that’s one that i’m going to want to favorite as well uh there’s neon to soul neon has a use case there’s sold to jto obviously there has a use case. There’s Sol to JTO.
Obviously, there’s a use case behind JTO tokens, one of the largest liquid staking platforms on the Solana network. Another thing I want to go and mention is there’s more Sol to USDT pools. Even though we already looked at those Sol to USDT pools, there’s more of them. So I’m going to show you a little trick to actually finding the best possible one in a little bit.
I’m going to go ahead and favorite like Sol to NOS as well as Joop to USDC. And now I got like 11 different pools bit. I’m gonna go ahead and favorite like Sol to Nos as well as Joop to USDC and now I got like 11 different pools here. I’m probably gonna stop there but ideally I could keep on going down that list do like hours and hours of research but I do want to keep it relatively simple.
So now that we’ve kind of looked at Sol USDT, Sol USDC as well as more Sol USDC pools I want to determine what’s gonna give me the best possible return. So I’m gonna head over to simulate and from there I’m gonna go to this pair section and once I’m on this pair I’m gonna select orca and I’m gonna look specifically at the salon network Now if I wanted to reference radium liquidity pools as well to determine if it’s a better return over on radium Which is also an exchange in the salon network. I can select radium in this scenario
I just want to look specifically at orca pools. So I’m gonna select orca Solana and then from there I’m gonna type soul as was USDC what this is gonna show me is all the Solana to USDC pools over on Orca Solana network. And as you can see, there’s the 0.04% tier, which is showing 72% APR and the 0.
05% tier, which is showing 218% APR. This one has 8 million TVL, 30 K and fees. This one has 4 million TVL, but 4K and fees. So already off the bat, this 0.04% tier has more liquidity, more fees, and its fee to TVL ratio is a lot better. So what I want to look at is both these positions side by side. So you could go ahead and pull up the simulate pair page.
And you’re going to notice that over here on this sold to USDC on the 0.05% tier, the one that’s showing a substantially higher return. Well, there’s a ton of liquidity over here, but there’s not a lot of liquidity over here. So if the price of Sol goes up to like 200 bucks or so, we’re getting into a period where we have a ton of liquidity, whereas if the price of Sol stays where it’s currently at, which is pretty reasonable to expect, we could get a pretty high return right now. So I would probably actually want to deploy into this 0.05% tier, even though
the ratio isn’t as good and it doesn’t have as large of a TVL or as many fees. It’s just because the liquidity distribution is kind of out of whack on this one compared to this one over here. We’re at the top of liquidity distribution. But that’s not all. We only looked at the USDC ones. Ideally, we could go over here and just search for USDT, or we can click this button right here, similar assets.
What it’s going to do is it’s going to show us derivatives of these different assets. So not only are we going to look at sold to USDC, we can also look at sold to USDT right in one dashboard. And we could see that this sold to USDT pool, which is on a lower fee tier, actually has a 260% APR compared to a 218% APR. So opening this one up over here, we could double check the liquidity distribution.
We are near the very top of the liquidity distribution, which is great. And as you can see, volume has declined a little bit over the past couple of weeks. So what I’m going to do is I’m going to narrow down that calculation range. I’m going to look at one day and see, hey, it’s only 3% APR over the past day. Two days is 60%, three days is 100%, and four days is 110%.
So realistically, this does not look nearly as consistent as that other one that is doing 220% APR. So I am going to end up going with this 220% APR one. Now, obviously, I’m not done. I’m not just going to deploy into one concentrated liquidity pool. What I am going to do is pull up the metrix.finance compare feature.
Now, this can allow us to compare multiple liquidity pools against each other. In this scenario, I’m actually using this as a way to save different liquidity pools because we’re currently working on like a feature where you can just favorite specific simulations, as well as we’re working on a portfolio builder where you can kind of build out multiple simulations and see the overall return for a portfolio.
So it’ll be interesting to see that stuff. But for now, I’m just going to save it over here. We’re going to look specifically at that 0.05% tier one because that’s the one that’s doing the high APR basically. We’re just going to add it to this compare tool, and later on we’ll dive into the ranges.
Next thing I want to look at are some of these other liquidity pools that I favorited. Now that I’ve kind of looked at sold to USDT as well as the USDC ones, I’m just going to unfavorite these ones from my discover page and keep on looking. We got jupe to USDC. Let’s go and open this guy up over here. And then from here, we’re going to be able to look at some of the information. Number one, the price is at the very top of the liquidity distribution.
Number two, volume has actually done pretty good recently. So we’re going to keep that in mind. And I’m probably going to use a calculation range of seven days or so. And from there, that shows that I’m doing about 175% APR. The reason why I’m adjusting my calculation range is because I want to use the most recent data. And that most recent data is consistent, as you can see, as opposed to it being 30 days. As you can see, it’s kind of inconsistent.
At the beginning of the month, we weren’t doing as good. Then we did really good, and now we’re not doing as good. So I want to use that recent data to get a more accurate estimate. That one’s about 175%. Joop USDC is looking very, very tempting. I’m going to go ahead and add that over to my compare tool as well, just so I have it saved. And I know, hey, I want to come back to this pair. This one is going to be on the 0.04% fee tier.
Just going to add that in here. And now we can compare Sol USDC versus Joop USDC. But we also just have them saved here. So when we start to build out the overall portfolio, we can go ahead and reference these ones over here. I’m going to go ahead and unfavor that one. And like before I go any further, obviously, I want to make sure that Joop has been doing pretty decent recently. And as you can see, it’s up 12% on the day.
If we look at the past seven days, it’s done really good. If we look at the past month, it hasn’t done as good. But what we also have to keep in mind is that the overall crypto market did see a pretty harsh month, basically. Since the beginning of April, Sol was going down, Matic was going down, Bitcoin was going down, ETH was going down, all the altcoins were completely tanking. So let’s keep that in mind here.
And as long as it’s correlated with the overall market or outperforming the market, that’s great. Now, if it was underperforming the market, that’s where I probably don’t want to invest into it, basically. I’m going to do that same exact thing for NOS because, well, I’m not too familiar with NOS. So we’re going to look at Nasana.
And as you can see, that’s up 3.5% on the day. Over the past month, it actually started declining before some of the other assets. It went from $5.57 to a bottom of roughly $2.90. Now it’s sitting a little above $4 at around $4.30. And if we zoom out, look at three months, we could see it is down from its previous three-month high.
Look at one year, that three-month high is actually its all-time high. And that all-time high was dollars and thirty three cents so it does look like we are starting to go up again we’re seeing a pretty good incline in price and it looks pretty healthy over the past 14 days we’re up 30 percent seven days up 24 percent and 24 hours roughly three point six percent so this Nasana is one that I definitely want to include in my portfolio because it looks like it’s starting to gain some traction obviously I need to be responsible and do some actual due diligence on the asset to make sure it’s something I want to include in my portfolio. But from there, we’re
going to go ahead and look at some sold to NOS pools over here, just pull it up on our pair feature. And as you can see, there is only one sold NOS pool that is, you know, relatively high TVL. So we’re going to pull that one up. Once again, do our basic due diligence on this. Like, okay, we’re at that top of liquidity distribution volume is actually consistent over the past 30 days so i’m happy with that uh and we’re doing a 225 apr so let’s go and add it to the compare tool let’s just add sol nasana over here and that once again was on the 0.3 percent
tier just like that and as you can see there’s actually like some other features that have some liquidity like this one has some liquidity but it’s only gonna be a couple hundred dollars same exact thing with this 2% and this one the 1% tier that actually has 1% of liquidity it’s not showing on pair because it doesn’t meet the requirements it doesn’t have above 5% overall liquidity basically so it’s not really worth factoring in because the returns on there are not gonna be good whatsoever so we’re just
gonna add in 0.3% here that way we have it saved now I do want to show you an example of something I’m not not going to invest into. So let’s go and find one of those. Looking over at Zeus, it looks like that’s done pretty decent over the past month. I’m also going to look over at Neon, which is another one that’s on our list.
And if you look at that over the past month, it hasn’t done nearly as hot. It’s actually gone down from about $1.80 all the way down to nearly $1. So let’s just say we didn’t want to include this on our list. One thing that we could do is start to do some due diligence on it. We’d hit simulate as per usual.
And from here, we can look at overall liquidity distribution. We can look at volume. As you can see, there’s this one day that had super high volume and the rest of the volume has just been declining. The reason why I would not want to invest into this is number one, it’s gone down over the past month and it doesn’t look like it’s stopping and number two well that volume is not consistent one day it traded two million dollars in volume and the next day it did 225 000 and then some days it did roughly 60k in volume or over here roughly 40k in volume so we just got to keep that in mind and
probably not deploy our capital into it because that volume is just not consistent whatsoever yeah it looks like a high yield but well that high yield is factoring in the day that we did really good if we use that seven day calculation range that yield gets cut in half still 260 but again that asset’s declining so i just don’t want to invest into that but assuming i’ve kind of gone through that process of looking at different liquidity pools and actually going through doing that initial simulation what i am
going to go ahead and do is just head on over to our compare feature where we have all those pools saved. And from there, I want to start to determine number one range of these liquidity pools, number two, the proper calculation range to use, and then of course, number three, if I want to deploy into them or not, right? And typically, I like to have three to five pools in my portfolio. I don’t like to be allocated on one exchange solely.
So if I’m wanting to have maybe 30K of my capital on the Solana network, I might do 15K on Radium and 15K on Orca, right? That’s typically the principle that I apply. But I’m gonna go ahead and pull up this sold to USDC pool by clicking simulate position. And then from there, we’re gonna start to determine our range. So in terms of like what we’re gonna do with our range, we wanna look at how many USDC equals one sole, first of all.
And then number two, we wanna look at performance. So over the past 30 days, soul has been seeing a pretty decent decline. Recently, it looks like it’s starting to pick up. We’re not sure if that’s going to stay consistent. We could zoom out, look at kind of a longer period of time. 60 days, it saw its run, it consolidated, and then it started going down.
It’s like 60 a low was roughly a hundred bucks. our more recent like seven 14 day low or so is going to be roughly 120 bucks. So obviously we’re probably not going to go below a hundred bucks. We could say that reasonably, at least for the foreseeable future. So maybe we want to set our bottom price at around 105 bucks, right? That’s below our low of roughly 120, but we also want to allow some room in the case scenario that we do continue to retrace.
I’m going to zoom back into 30 days from there. What’m looking at is asset ratio typically in these like usdc crypto pairs i want to have like 50 at least of my money in seoul and that’s if i’m like somewhat bullish if i’m really bullish i’m gonna want to have like 70 of my capital in seoul the cryptocurrency as opposed to the stable coin because we don’t want to take on exposure to the stable coin when the overall market’s going up basically so i’m going to drag that max price out over here to something like 215. as you can see that gets me to 50 50 but
even then 215 is a ways away so next best thing that i could do is bring up that min price to something like 115 basically that gets me to roughly 56 soul and i can bring that up to like 235 that gets me to 60 soul that still keeps me at a 160 apr we look at the volume history as you can see more recently volume hasn’t been as hot so let’s go and just use the more recent volume it’s roughly seven days that’s more consistent that’s getting me 130 percent so now we’ve found our range 115 to 235. The next thing
I’m going to do is head back over to the simulate page. And then I’m going to go to this pair functionality that we used earlier. And now I’m going to confirm now that I have arranged that this is the best possible pool for sold the USDC. Now, if I want to look specifically at Orca, I’m only going to select Orca.
In this scenario, I want to kind of determine what has the best return. So I’m going to be on Orca as well as radium. So we’re going to type in soul We’re going to type in usdc our deposit amount. Well, maybe I want to deposit like fifteen thousand dollars here My calculation range remember we are using seven days over here. Our range was 115 to 235 So for my range i’m going to type in 115 235 we’re going to check that similar assets that way we can look at the USDT ones as well.
And we’ll just wait for that to load. It’ll take a couple seconds, maybe 10 to 15. It’s going to show us the Radium pools, as well as Orca pools, and also all the different fee tiers. So as you can see, we literally got seven different options right here to choose from. So first things first, this one, 96%.
This one, 130%. That one’s better than that one. We already know that off the bat. This one is 70. This one’s 130. And this is actually the one that we are looking at. And if we look at this one over here on Radium, this one’s 100%. This one’s 80%. And then this one’s 90%. So the best two are sold to USDT over on Radium, as well as sold to USDC over on Orca.
Now, how exactly do I decide between the two? They have similar metrics. Both are collecting around 4K in fees, but one has 1 million bucks in TVL. The other has 4 million bucks in TVL. The reason why this one has 4 million bucks in TVL is because this person’s got a huge chunk of liquidity over here. But other than that, very, very similar metrics.
So let’s keep that in mind. What I would do as the deciding factor is remember going back to the diversification. If I’m allocating half to Orca and half to Radium, then the deciding factor isn’t really going to be the APR, considering these APRs are very similar.
The deciding factor will be what other positions are going to be on Orca compared to Radium. So if maybe one of these positions over here, like USDC Joop or NOS Sol is doing better on Orca, then I’m going to want to have these ones on Orca, and I’m going to want to have the Sol to USDC over on Radium. Whereas if it’s vice versa, I just wanna have Sol USDC on Orca and then the other two on Radium.
That goes back to diversification. You don’t have to do it that way, but that’s just kind of my personal preference, making sure I’m diversified across exchanges in case there is an exploit, basically. But going back to it, let’s just say we were to deploy this one Orca because remember, this is the Orca crash course.
We’ll create a Radium crash course. What I want to go and do is actually grab that information, right? So, sole USDC, this is the one that we added that we were initially looking at on our compare tool. Now, we want to go ahead and just adjust the numbers so that way we have them saved. So, maybe we’re deploying $15,000.
We have the seven-day calculation range. Our min price is $115,, and our max price is 235. Just like that, this is the position that we are looking at. We want to keep this one here, and then we want to start to focus on another position, like Jupe USDC, basically. I’m going to repeat that same exact process that we just did for Sol USDC.
We’re going to open up Jupe to USDC, basically, and we’re going to look at liquidity distribution. We’re at that top. We’re going to go down here, look at volume history. Volume’s pretty consistent, except recently, it has actually seen a little bit of a decline. Maybe I want to use a five-day calculation range here.
And then we’ll start to find our actual range. So I’m going to look at how many USDC equal one jupe. From here, I can say, okay, my top price, probably want to have that near the 30-day high. My bottom price near the 30-day low.
And then I want to add some buffer room right I want to bring that down so maybe we do point eight or point seven is properly more reasonable as you can see our bottom was 85 cents and then we can bring that max price up to fit that overall ratio of the assets if we bring that up to roughly two dollars yeah that’s pretty high but at the same exact time it gives us 50 50 and then we could bring that min price up to kind of accommodate and get us to about 55 jupe basically so like 0.
8 is what i’m gonna do it’s a little bit less than our our previous low over here a relatively bullish approach on this pool but i’m pretty happy with it let’s say we did 0.8 to 2. we’re gonna head over to pair once again we’re gonna determine if it’s better to be an orca or radium so that is going to be a jupe to USDC basically.
Um, and we’re going to be on orca as was radium on this, my deposit, let’s just assume a $10,000 deposit. And let’s assume a calculation range of five days. We’re going to throw in our range, which once again is 0.8 to two basically. Uh, and as you can see, it’s just best to be over on orca because there’s no pools over on radium that are worth deploying into basically.
Um, and this is possible one so we’re gonna go ahead and put this information over in our compare tool so remember we are going to be using the five day calculation range uh we’re going to be looking at how many usdc equal one jupe our range is going to be 0.8 to 2 basically just like that uh and then as you can see we’re going to be using a 10 000 deposit that deposit that gets us 91% APR. I’m pretty happy with that off a 10K deposit, making 25 bucks a day.
And now that we have like two pools here, let’s assume that’s our portfolio, right? What we can do is we can easily look, hey, 15K here, 10K here, that is $25,000, right? And this one’s making 53 bucks a day. This one’s making 25 bucks a day, which logically means that we are making $78 per day.
That’s pretty good, right? And then ideally we would add in our other positions. Like we have Nas Sol over here and assuming we had like a $5,000 deposit in here and maybe we were making 30 bucks a day, then we can already say we’re making 108 bucks per day now. So that’s exactly how we would kind of find the pools. And after I’m ready to deploy into a pool, what I would actually do is open up the simulation page, kind of like this, just hit create position.
It’s gonna take you right over to the platform to create that position. We’re gonna select the custom, obviously, for the pool, and then we’re gonna enter our range over here. So that’s gonna be 0.822, and that’s actually gonna show you the 24-hour, but annualized yield, which is right in line with what we simulated over on Metrix.Finance, which means that this is be pretty consistent but what this yield won’t show is in this scenario that there is super high volume one day it might show like 200% when you drag it out and you look over at the long-term
data it might actually be like 50% or the next day might be 50% so you don’t want to rely strictly on that that’s why you want to use metrix.finance because it’s gonna allow you to select different data points and allow you to do a deeper analysis than just kind of typing in the information here and it’s showing you a 365 day yield.
We’d hit next step, choose amount. I always like to click match deposit ratio. That essentially says, hey, you got this much of one token, this much of the other token. If you deploy both of them, we’ll automatically execute the trade to get you that proper ratio. Because remember, our ratio is 57% jupe, 42.8% USDC.
So in the scenario that I had some of these assets in my wallet, I would put like, okay, I wanted to play a total of like $10,000 into this pool. I would literally just type that down here. And then I would hit next step. And assuming I had USDC or jupe in my wallet, it would automatically go ahead and execute a trade to match the deposit ratio and let me get into that pool basically.
And then i open up the pool i can manage from the liquidity section over here on portfolio currently metrix.finance does not have any feature to track the positions but we will be having features for tracking positions relatively soon so do keep that in mind but for the time being i would just use a spreadsheet to track my positions and track how much i deployed as well as how much i currently have but also how many fees i have and just kind of record on a day-to-day basis exactly how much money I’m actually making.
Like, hey, this day I had $10 in fees or my total fees was 10 bucks this day. And then my total fees the next day was 20. So that means I made $10 one day, $10 another day. And the next day it was 30 or the next day it was 35. So that means I made 15 bucks this day. That’s the type of information I would be tracking. So that way I could look at it on a more long-term basis and see exactly how this position is performing. Basically.
I hope you guys did enjoy this video and this crash course on Orca. Remember you can apply some of these principles to other decentralized exchanges, other networks, everything like that. Metrix.finance currently supports two exchanges on the salon network. That is Orca as was radium. I will say for Orca, you do have to have the pro plan as well as compare and pair are going to be a part of the pro plan whereas if you want to look over at radium radium is completely free but compare as well as pair are still 100 pro features but you can still do the simulation the discovery
and all those other different things that i went over on radium for free and that’s just because we worked with radium on a grant and unfortunately orca did not accept our grant to implement them on our platform for free basically if you guys do want to win a one-year subscription to metrix pro I do recommend you follow our x page as well as drop a like and subscribe when notifications turned on here So you never miss out on this content, but also over on our x page We’re always doing giveaways like right now. We’re running a giveaway a couple days ago
We also were running a giveaway and those are still running right now So if you’re watching around april, then you might be able to participate in these giveaways. But also, we’re always hosting them because we just wanna have the best software out there and make sure that users are actually able to use it.
