Interview with Liquidity Miner Neohowie¶
Nearly three months have passed since the launch of Miner. We are thrilled to witness the enthusiastic participation and fierce competition among many miners in our liquidity mining program.
In this post, we introduce Neohowie, a consistent ranker in our Weekly Top 10. Beginning his crypto journey in 2015, he has gained significant insights into market making through our liquidity mining program. Let's explore his journey!
Disclaimer: This interview is not financial advice. The views expressed are solely those of the interviewee and do not represent the opinions of hummingbot.io. Hummingbot neither guarantees nor claims to guarantee profits.
Can you share how you started in crypto trading?¶
My introduction to crypto trading began in 2015. Initially, I was skeptical, perceiving it as a cyberpunk trading instrument. However, between 2015 and 2017, I delved deeper and became intrigued by the technology, particularly its decentralized nature. This led me to allocate more funds to Bitcoin trading.
Coming from a traditional finance background, I found crypto trading to be a sophisticated and advanced environment, in some ways surpassing traditional finance. The near-instant settlement, the reduction of intermediaries typical in traditional finance, and the accessibility provided by exchange APIs are notable. These features allow for broader market making opportunities, unlike in traditional equity markets where access to the order book is limited and expensive. My interest in trading grew as I learned more about these aspects of crypto.
What were the initial tokens you traded?¶
I began with Bitcoin, investing in a fund focused exclusively on Bitcoin trading. This allowed me to learn from seasoned traders. During the 2017 boom, I expanded into Ethereum and various altcoins, continually broadening my knowledge.
When did you start using Hummingbot?¶
I was drawn to Hummingbot before your liquidity mining campaigns began, around February. My goals were to actively participate in market making and to capitalize on the rewards from liquidity mining. Hummingbot presented a novel opportunity to generate income from my holdings, alongside other methods like lending on platforms like BlockFi or staking.
How has your experience been with Hummingbot?¶
With each new release, I am increasingly impressed by Hummingbot. Though there is still room for improvement in aiding users to become more efficient market makers, Hummingbot's approach to decentralized market making is pioneering. The commitment to community feedback and the enhancements in user experience with each update are commendable.
Initially, setting up Hummingbot posed some challenges. It took about two weeks to become fully operational, dealing with aspects like API key setup and ensuring continuous operation. The process was a significant learning curve, but the anticipation of earning rewards through the liquidity mining campaign was a strong motivator.
As a top liquidity miner, what has your experience been like?¶
I began liquidity mining with Zilliqa and Harmony pairs. The journey has been enlightening, though not without its challenges, especially during volatile market conditions. Learning to utilize features like inventory skew and kill switch has been pivotal in managing risks.
Hummingbot has significantly expanded my understanding of market making beyond my 15 years in traditional finance.
Why did you choose to trade ONE and ZIL pairs?¶
My choice of tokens for market making is driven by my comfort in holding them and the yield they offer. For instance, ZIL/BNB offers a better yield than ZIL/USDT despite having less liquidity. I'm willing to engage in market making for less liquid pairs if the potential yield justifies the risk.
Have you been profitable so far?¶
Yes, I have made profits both in US dollar and ETH terms. Adjusting parameters wisely could have enhanced my earnings. Success in market making, especially in crypto, depends on one's base currency, whether it be BNB, ETH, USD, or another cryptocurrency.
What strategies do you use in liquidity mining?¶
My strategy revolves around pure market making. I adjust the spread and use the kill switch based on market volatility and inventory levels. Participation in the Eagle Club, which is based on earned rewards, has been a rewarding aspect of the program.
Have you experimented with multiple orders or different bot instances?¶
I primarily run multiple instances of the bot, each dedicated to different pairs. This approach allows for more focused market making strategies for each pair.
Are Hummingbot's current strategies user-friendly for new miners?¶
Hummingbot's strategies are accessible to those with technical or financial backgrounds, though newcomers may require more time to familiarize themselves. Market making inherently involves complexities beyond traditional crypto mining.
How often do you adjust your bot settings?¶
My adjustments depend on market volatility. Significant inventory skews or specific token events like forks prompt me to make more frequent changes. Keeping abreast of news and community discussions, especially during market upheavals, is crucial.
What key insights have you gained from using Hummingbot?¶
Engaging with the community and being open to learning are essential. The March sell-off was a significant learning event for many, emphasizing the importance of features like inventory management and risk mitigation.
Any trading tips for fellow miners?¶
For beginners, my advice is to start small but start. Having some investment in the game is crucial. Experienced traders should share insights and strategies. Open communication and collective learning are vital for growth and success in market making.
- Hummingbot Miner's app: current liquidity mining campaigns
- Hummingbot Help Center
- Liquidity mining free trainings
- Liquidity mining whitepaper
- Getting started
For exchanges and projects interested in learning more about liquidity mining, please contact us at [email protected].