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Hummingbot Blog

Interview with Liquidity Miner Lorenzo

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It's been just over two months since the launch of our Liquidity Mining program. With intense competition, miners have been diligently striving to ascend our leaderboard. We've witnessed an increase in miners joining the program and investing substantial asset amounts.

In this post, we introduce Lorenzo Boyice, a relatively new member of our community who has consistently ranked in the Weekly Top 10 for the past few weeks. In 2010, he faced a dilemma when hackers demanded a 21 Bitcoin ransom to unlock his computer files. Now, as a software engineer, he began investing in cryptocurrencies in late 2018/early 2019. Through liquidity mining, his current monthly return ranges between 3-5%.

  • in Miner
  • 3 min read

Introducing the Eagle Club

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We are excited to announce that we are launching the Eagle Club, a VIP program for top liquidity miners today. The goal of the Club is to enhance the user experience of top performing miners and to provide dedicated support to help them trade more confidently and perform better.

Along with the launch of the Eagle Club, we have also rolled out a real-time leaderboard where miners can see how they rank versus other miners.

Qualification

The Eagle Club is invite-only. It’s not only a VIP program that Team Hummingbot will devote energy and time to, but also a close-knit community for experienced crypto traders to share their thoughts and obtain personalized support.

At the first month of launch, we will invite top 10 miners of each past week to the Club. Members who are qualified for the Club will be receiving an invitation email. Anyone who gets in will stay in the Club permanently. In the long term, we plan to invite approximately 10% of our total user base to the Club.

Hummingbot Collaborates With Binance

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Hummingbot is excited to announce that it is working with Binance on two strategic initiatives:

  1. Bringing new algorithmic traders to Binance using Hummingbot and
  2. Expanding liquidity mining with an issuer referral program.

Hummingbot is an open-source crypto trading software client that allows users to trade cryptocurrency with high-frequency trading strategies such as market making and arbitrage. Hummingbot currently supports nine exchanges, both centralized and decentralized. Binance was among the first exchanges that Hummingbot supported at launch.

Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies. Since early 2018, Binance has been considered as the biggest cryptocurrency exchange in the world in terms of trading volume.

  • in Miner
  • 6 min read

🌊⛏ Liquidity Mining Launch!

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Today marks an important milestone for Hummingbot as we launch the first live campaigns for liquidity mining! The inaugural campaigns will last for a period of 12 weeks with a total reward pool of USDC 51,000.

The first four campaigns go live at 12.00am UTC March 3, 2020 for a subset of our launch partners:

  • Harmony
  • iExec
  • Zcoin
  • Zilliqa

These initial campaigns will reward participants for trading in eligible tokens on Binance.com. For up-to-date campaign terms and participation details, please go to the Hummingbot Miner's app or Documentation Site: Active Campaigns.

Rewards will be paid out weekly based on weekly periods beginning on Tuesdays 12.00am GMT through the following Tuesday.

Hummingbot Partners with KuCoin

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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

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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

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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!