Hummingbot Bi-weekly #37

Shipped v0.28.0 release with new Celo connector + strategy, Mainframe liquidity mining campaign, May recap, etc.

Hummingbot Bi-weekly #37

Welcome to the Hummingbot Bi-weekly, your regular dose of updates about new features πŸ€–, upcoming events πŸŽ‰, and announcements from our rapidly expanding community πŸ‘ͺ!

Hope this issue finds you and your ❀️loved ones safe and strong πŸ’ͺ. Subscribe to never miss any new issue.

πŸš€ We shipped Hummingbot v0.28.0 with new celo-arb strategy today!

This release contains the new Celo connector and the new celo-arb strategy, along with a redesigned pure market making strategy and many bug fixes.

Watch the celo-arb demo video here.

πŸ™‹πŸ»β€β™‚οΈ Note from our CEO: Liquidity Mining is about Community

Hey everyone,

Liquidity mining is πŸ”₯πŸ”₯πŸ”₯

With the new Compound governance token COMP shooting up to almost $100 on the first day from liquidity miners farming yield, following a similar trajectory for Balancer’s BAL token after their recent liquidity mining launch, the DeFi community is asking: β€œIs liquidity mining the new ICO / transaction mining / yet another way to scam retail traders?”

We’re obviously huge proponents of liquidity mining, since we wrote the original whitepaper for it and have been run successful campaigns for a number of projects on Hummingbot Miner.

But I think the concerns brought up by Tushar and others are worthy of discussion. The sad truth is that most of the investors in ICOs, transaction mining, and earlier community-based ways to economically participate in early crypto projects were retail investors from all over the world. While many projects had the best of intentions, many of these investors were wiped out when the heat faded and prices dropped by 90%+.

Liquidity mining are systems that incentive a network of decentralized actors to provide liquidity to a trade-able asset. From our past experience helping 6 different projects run liquidity mining campaigns, it works well when the sponsoring project has a vibrant community of engaged users who want to contribute to its success. This is because the community supports each other in identifying good mining strategies, calls out potential pumps and dumps that hurt new users, and reinforces norms that lead to sustained growth. Most importantly, mining rewards should be a carrot that incentivizes useful work, not the sole reason to perform that work.

I can easily envision how liquidity mining for certain projects could turn out badly. If a token project doesn’t have a strong pre-existing community, or if the economic activity being incentivized is trivial, most of the participants are likely to be short-term profit-seekers rather than community members seeking to promote long-term viability. If Β liquidity mining rewards are the only reason to perform work being compensated, the scheme is likely to collapse once the initial hype dies down.

Like many things in crypto, whether liquidity mining is good or bad depends on if there’s a real, organic community behind it.


Michael Feng

πŸŒŠβ›οΈ Mainframe liquidity mining campaign starting this week

We are excited to announce that the NEW Mainframe liquidity mining campaign has kicked off this week.

Join other liquidity miners to share the USDC9,000 reward pool over the next 12 weeks. The eligible token pairs are MFT/USDT, MFT/ETH, and MFT/BNB.

πŸ“ˆ Liquidity mining: May recap

In the past month, we continued to see strong participation from miners across all campaigns.

The Solana campaign was launched in Week 13, which brought many new miners to the platform. We saw a large number of bots running on SOL token pairs. We also saw continued strong participation for the extended campaigns for iExec, Zcoin, and Zilliqa.

3-month Summary Statistics

  • Over 1,375 sign-ups, with 406 distinct miners participating and earning rewards
  • $37.1mm of total filled order volume from March 3, 2020 to June 1, 2020
  • USDC 34,375 total rewards have been paid out
  • The top miner has earned USDC 4.9K of rewards in total, and USDC 1.6K in the past 4 weeks

🍿 Crypto snacks

A curated list of recently-published content about crypto trading, #DeFi, and other topics that might be interesting for Hummingbot users and developers

🧁 While many Ethereans are excited about DeFi, not everyone believes this is the only possible route for Ethereum’s mass adoption. Vitalik Buterin argues that other Ethereum use cases also have great potentials. Read more.

🍦 Many people start out their trading journey with almost zero knowledge. But the financial markets are anything but easy. A trader shares the 5 things he wishes he had known before he started trading.

πŸ’¬ Get involved!

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