Name of Project / DAO / Company
Orcania DeFi 2.0 DEX by Orcania
Application type
Product Launch
Proposal overview
Please read the white paper before reading the following sections.
The Orcania’s DEX goals are as following:
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Unite the Harmony ecosystem under one DEX with very low fees, high flexibility, and a new liquidity model that allows even the smallest of tokens to trade flexibly with other assets on Harmony.
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Allow and encourage retail traders to trade in a decentralized form on Harmony without having to worry about high DEX fees or gas fees.
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DEX’s middle crypto nature creates lots of small arbitrage opportunities that help yield high returns to liquidity providers, and many transactions on Harmony allowing more ONE to be burned.
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Bridge more assets to Harmony using the available infrastructure and using the Orcania Multichain upon it’s release to allow for a wider and richer ecosystem.
We intend to be the center and hub of Defi on Harmony, to unite all Harmony projects under one efficient DEX, rather than have each project launch it’s own fork of uniswap or sushiswap.
This dex for every project design that has been going around has spread the Harmony financial ecosystem very thin, and unlike the Orcania DEX that can operate flexibly with small liquidity, these forks require a substantial amount of liquidity to allow flexible trading without resulting in insane DEX fees, and that has made trading on Harmony very hard due to low liquidity resulting in high price impacts, and high DEX fees due to the many pairs a trade has to go through before it succeeds.
Orcania DEX’s design, as explained in the white paper, resolves the issues of high DEX fees by removing the need to go through pairs to finish a trade, and allows for flexible trading even when there is little liquidity in a token.
Furthermore, uniswap, sushiswap, and their alike forks, have high DEX fees (0.3%) which multiply over and over gain if a trade has to go through multiple liquidity pairs. This discourages investors and retail traders from trading on decentralized platforms due to huge fees they have to pay on their swap, that in some cases reach +1%. Orcania DEX fixes that issue by having a max fee of 0.2% and a low fee of 0.1%, creating a more suitable environment for retail trading and investing, where anyone can swap cryptos without having to worry about high fees.
Whenever a swap happens on the Orcania DEX, price of an asset will change, when compared with external markets it will pose an arbitrage opportunity. When arbitragers take that opportunity, if it is with any token other than OCA, it will create another small arbitrage window, and then another until a balance is made with the external market. These little arbitrage openings will create a high trading activity on the DEX, resulting in more rewards to liquidity providers. Furthermore the many transactions resulting from this arbitrage will allow more ONE to be burned on the Harmony blockchain.
Using Harmony’s available bridges, and using the upcoming Orcania Multichain project, we intend on bridging more liquidity and more assets to Harmony, to allow for wider ecosystem with more funds and liquidity. Such ecosystem will encourage many investors to move to Harmony once all those funds are utilized in Defi projects such as Orcania DEX and Tranquil lending/borriwng market place, due to the trading and lending / borrowing opportunities that will arise.
DEX’s and lending market places build the base stone of blockchain’s ecosystems due to the many investment opportunities they provide.
With all that said, our targets are Harmony’s current users and future users (To use the DEX), Harmony’s existing projects and any projects looking to launch on Harmony (To join the project by moving their liquidity to it), retail investors and big investing firms and DAOs who are looking to trade in a good marketplace while maintaining ownership over their funds (To use the DEX).
Some of the strategies we’ll be using to achieve all the above goals:
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Reaching out to available and upcoming Harmony projects to help them deploy their liquidity to the DEX under incentives already available in the protocol, and incentives handed by the Orcania team such as off exchange offers to buy OCA at a discount to be used in liquidity of the project.
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Video tutorials to helps users and investors maneuver around the DEX and understand how it works and how to use it.
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Educational videos helping users who are not familiar with Harmony, crypto, or decentralized applications, to better understand it and get familiar and comfortable with it.
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Direct meetings with big investors and capitalists to explain to them the DEX, it’s benefits to them, how to use it, how to benefit from it, and how to secure their funds in it.
The project is through with development, and is currently working on raising funds to use as initial liquidity for important tokens that would bring trading activity to the DEX upon its launch (BTC, ETH, USDC, Coin of the Blockchain).
We are reaching out to blockchain teams, small investors, and big investors to invest in the project and help provide the initial liquidity.
The Orcania DEX is now available on Harmony testnet, here.
The Orcania coin OCA and the Initial coin offering is live on Harmony mainnet, here.
We are seeking to raise a minimum of $2M to distribute as initial liquidity across the main assets (BTC, ETH, USDC, Coin of the Blockchain) $500k to each to allow for trading with minimal price impact upon trades, especially when big investors are attempting to trade on the DEX with big volumes. All funds raised will be split evenly as liquidity to the main assets.
Furthermore we are hoping to add more than $10M to the DEX as liquidity from other tokens and projects on Harmony. We aim to keep going on the long run to move up to $100M of projects’ liquidity to the Orcania DEX.
Team
Lead Blockchain Developer: Edy Haddad, aka EAOE
CTO of The Red Ape Family
CTO of VLTMT
LinkedIn: https://www.linkedin.com/in/edy-haddad-42725a211/
Github: EAOE3 (EAOE) · GitHub
Lead Web Developer: Sebastian Madrid, aka Loque
LinkedIn: https://www.linkedin.com/in/sebastian-madrid-38597a200/
Github: Loque18 (Sebastian) · GitHub
Proposal ask
We are inviting Harmony to invest as much as it see fits in OCA.
OCA’s ICO price is 0.1$. Harmony will able to buy OCA at 15% off under the following terms:
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OCA bought is vested on the course of 3 years through a smart contract on the Harmony blockchain (25% will be kept with the Harmony team upon purchase, then 25% vested each year).
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Harmony has the freedom to sell it’s OCA reserves and use it as it sees fit. But it’s the Orcania team’s wish to see earnings raised from OCA selling used in Core Development of the Harmony protocol.
We hope Harmony invests $500k to help us meet the minimum required metric to properly launch the DEX on Harmony.
Justification
To provide a flexible and stable trading environment upon the release of the Orcania DEX, we need to supply an initial liquidity to main crypto assets that would attract the most trading activity, and allow new cryptos to trade with those assets with no high price impact per swap.
Swaps on DEX’s are subject to a price impact depending on how much liquidity there is in the pools of the tokens being swapped, and the volume of the swap. To prevent high price impacts upon trades, and to allow big investors to trade big amounts without being heavily affected by this price impact, a big volume of liquidity is required, so to give all investors this smooth experience that would incentivize them to use the Orcania DEX and the Harmony blockchain, we are working to raise funds to supply such liquidity.
Funds raised from Harmony and all other investors participating in the ICO or getting offers will be used as following:
- 25% of the funds used to provide OCA - 1BTC liquidity then locked
- 25% of the funds used to provide OCA - 1USDC liquidity then locked
- 25% of the funds used to provide OCA - 1ETH liquidity then locked
- 25% of the funds used to provide OCA - ONE liquidity then locked
OCA used to pair with the main assets and provide liquidity will be newly minted OCA for this specific purpose.
All liquidity provided by the raised funds will be instantly locked and forever become part of the DEX’s locked liquidity protocol, helping the DEX build self sustaining liquidity.
Metrics for success
To provide a flexible and stable trading environment upon the release of the Orcania DEX, a minimum liquidity of $500k is required (distributed evenly among the main cryptos) to allow small volume trading transactions ($1K swaps) without causing a high price impact per swap.
To allow trades with a volume of $5k to occur with a price impact of less than 1%, $2M liquidity is required.
To allow trades with a volume of $10k to occur with a price impact of less than 1%, $5M liquidity is required.
If the metric of $500k is not met, we will provide available liquidity to (OCA - 1USDC) and (OCA - ONE) and a third crypto (1BTC, or 1ETH) if liquidity raised is greater than $350k, then open farming if needed to encourage Harmony users to provide further liquidity to the DEX.
The APY of providing liquidity on the Orcania DEX is surprisingly high compared to other DEXs due to the middle crypto protocol, so farms might not be needed. But if needed to further incentivize users, farming pools will be opened.
Following that we will move with our plans as normally intended to attract more Harmony projects to list on the Orcania DEX with incentive and the option to get a farming pool and farm rewards for their asset to encourage their community and the Harmony community to provide further liquidity to their asset and the DEX.
External links
All provided throughout the article
I hope you get the funding that you need to continue to build on Harmony. You have my support fully.