Skip to content

Hummingbot Blog

Hummingbot Partners with KuCoin

cover

Hummingbot is thrilled to announce that it has partnered with leading crypto exchange KuCoin to bring Hummingbot’s trading capabilities to the exchange.

KuCoin Exchange Connector

Integrating Hummingbot to KuCoin will enable KuCoin's account holders to deploy Hummingbot’s quantitative and algorithmic strategies to engage in high frequency, automated trading. Currently available strategies include market making, arbitrage, liquidity mirroring, as well as trade execution strategies such as TWAP and VWAP execution. Hummingbot also allows users to create their own custom strategies.

Development of the KuCoin exchange connector is already underway. The connector is currently undergoing testing and we expect to release the integration by the end of January 2020.

  • in Roadmap
  • 9 min read

Hummingbot 2020 Roadmap

cover

2019 recap

At Hummingbot, our mission is to democratize high-frequency trading (HFT).

Before, only hedge funds had the technology to run lucrative HFT strategies like market making and arbitrage. After we launched Hummingbot in April 2019, ten thousand people around the world have installed our open source HFT software. Currently, Hummingbot's weekly install rate is growing at an 18% clip.

  • in Academy
  • 6 min read

Demystifying Liquidity Mining Rewards

We explain in more detail the methodology and mechanics of liquidity mining, a data-driven, objective methodology for quantifying market maker performance.

In our liquidity mining announcement, we introduced a data-driven, objective methodology for quantifying market maker performance. This serves as the basis for determining fair and open compensation for market makers. So how does it all work? In this post, we explain in more detail the methodology and mechanics of the platform.

Introducing Liquidity Mining: A Marketplace For Market Makers

  • Market making is a huge but inefficient industry in crypto. Exchanges and token issuers pay quantitative hedge funds millions of dollars per year to provide liquidity.
  • We introduce liquidity mining, a digital marketplace for liquidity, powered by the Hummingbot open source software that lets anyone run a market making bot (read the whitepaper).
  • Simulations show that users can earn 10-50% annually while providing the same level of liquidity as a hedge fund. This results in 5-10x cost savings for exchanges and token issuers.
  • We are excited to announce our 8 launch partners that represent a broad cross-section of the crypto market (centralized exchanges, DEX protocols, and token issuers) who will create liquidity mining campaigns that reward their communities for market making.

Liquidity Mining Whitepaper

This summary provides an overview of the Liquidity Mining whitepaper, which introduced a novel approach to liquidity provision in digital asset markets.

The document explores the historical context behind market making, the state of crypto market making in 2019, compensation models, and proposing an innovative liquidity mining model aimed at optimizing the market making process.

  • in Miner
  • 6 min read

Does Community-Based Market Making Work?

Analyzing 2 months of data from $ONE Makers

cover

Two months ago, in conjunction with our friends from Harmony Protocol, we started an experimental program called $ONE Makers to see if ordinary individuals using Hummingbot to run market making bots could effectively provide the same level of liquidity as professional market makers.

Both we and Harmony viewed $ONE Makers as an experiment. In particular, we wanted to answer the following questions:

  • Could people actually make money or would they get destroyed by more sophisticated players?
  • How many people are needed to effectively replace a professional market maker?

Read on and find out!

Interview with Liquidity Miner Dominator008

cover

It's been just over two months since the launch of the $ONE Makers liquidity bounty program. With intense competition, bounty hunters have diligently worked to climb the ranks on our newly launched, real-time leaderboard. The trading volume for $ONE in July and August totaled an impressive USD $5.98 million.

In this post, we're excited to introduce Dominator008, who clinched the #1 spot in the August reward period and has earned over 10 ETH in the previous period. Dominator008, a software engineer by profession with a deeply technical background, joined $ONE Makers in mid-July. He is currently utilizing hummingbot to trade various pairs, including ONE.

Interview with Liquidity Miner David Salter

cover

Three weeks have passed since the launch of the $ONE Makers liquidity bounty program in collaboration with Harmony Protocol. We've witnessed $ONE's trading volume soar beyond 130 million. Bounty hunters are vying fiercely to ascend our leaderboard.

In this edition, we spotlight David Salter, who currently holds the #6 rank (as of July 22, 2019) and has accrued approximately 1ETH in bounty rewards. Boasting a solid technical background, David has extensive experience in the telecommunications and finance sectors. His journey into cryptocurrency trading began in July 2017, and he now consistently achieves 0.5%-3% profit per trade using Hummingbot during his trading sessions.

Join us as we delve into David's experiences and gather insights from his trading strategies!

Introducing Harmony Liquidity Bounties

cover

A new approach to solving one of the biggest problems that face issuers of digital tokens: liquidity.

For the first Liquidity Bounty, we have partnered with our friends at Harmony Protocol, a Layer 1 blockchain project with key innovations in sharding and network transport, founded by a highly technical team from Google, Apple, and Amazon.

  • in Academy
  • 8 min read

Exchange Types Explained: CLOB, RFQ, AMM

cover

Since Hummingbot is an open source bot platform that connects to many different exchanges, we have developed a deep understanding of the nuances between various exchange types.

In this post, we discuss the three main methodologies that digital asset exchanges use to facilitate asset transactions. We hope that this post helps crypto traders and developers choose the right exchange for their needs.

TLDR

Exchanges perform the fundamental role in free markets of bringing together and coordinating buyers and sellers. Exchanges provide a venue for these parties to discover one another, negotiate and agree terms, and ultimately transact. Exchanges have adopted multiple methodologies to achieve this: