Hummingbot Newsletter | January 2021
Released Hummingbot v0.35.0, Frontier & QuarkChain liquidity mining campaigns, 2020 Year in Review, etc.
Welcome to the Hummingbot Newsletter! Hope this issue finds you and your ❤️loved ones safe and strong 💪.
From now on, we will be sending out this newsletter on a monthly basis on the same day as our new release. As before, the Hummingbot Newsletter serves a regular dose of updates about our latest features 🤖, upcoming events 🎉, and announcements from our rapidly expanding community 👪!
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🔥 Shipped latest release of Hummingbot!
We are very excited to ship the January 2021 Hummingbot release (v0.35.0) today. This release includes:
- Improvements to Binance Futures connector and
- Usability fixes for Uniswap, Terra & Balancer connectors
Bug fixes to cross-exchange market making strategy & more!
🙋♂️ CEO Note: Extending Hummingbot to perpetuals
Ever since we launched Hummingbot, the most common request we’ve fielded from the community has been to support derivatives trading. Given that we focus on serving developers and more sophisticated traders, we’ve always wanted to fulfill that request.
However, we first had to ensure that Hummingbot was working properly on spot exchanges before we added derivatives. Now that Hummingbot supports 15+ spot exchanges and is used by a worldwide community of traders and developers, we believe it’s time to starting expanding Hummingbot’s capabilities.
Since crypto derivative exchanges are more complex and less standardized than spot exchanges, abstracting different exchanges into a single connector standard is a bit more difficult. That’s why we’re taking an incremental approach to adding derivative connectors and strategies.
In the v0.34 release, we introduced a new Binance Futures connector along with a new perpetual market making strategy focused on perpetual futures, the most common derivative product traded in crypto.
In today’s v0.35 release, we added position management parameters that allow users to open trailing stop and profit taking orders in order to manage derivatives positions after they are opened. In upcoming releases, we plan to further improve perpetuals support by add more exchanges that support perpetuals, as well as a strategy that allows users to arbitrage between spot and perpetual markets.
This incremental approach allows us to keep the code simple while gathering feedback from the community as to what users want us to add next. Please try out the new Binance Futures connector and the
perpetual_market_making strategy, and let us know what you think!
🆕 Year in review 2020
By the end of 2020, we have seen 1,179 unique miners participate in liquidity mining. The order book depth created by liquidity miners resulted in $303.6 million of traded volume. Meanwhile, the rewards paid out to miners has totaled USD 215,362 equivalent, resulting in cost-effective market making for token issuers.
Liquidity mining 10-month summary stats (More details can be found in our December Recap):
- The overall miner traded volume reached $300+ million
- More than $215k in cumulative rewards paid out
- 4,626 total sign-ups, with 1179 distinct miners having participated and earning rewards
- The top-ranked miner has earned equivalent USD $29k in total rewards
As we kick off 2021, we hope to carry the momentum of strong activity in December to the new year! We are already working on announcing new campaigns shortly as well as looking to expand liquidity mining capabilities to additional exchanges.
🆕 New liquidity mining campaigns
Since the platform’s launch, we have run campaigns on Binance.com for 15 different token issuers for 46 different trading pairs.
In December, we launched three new campaigns, for Ava Lab’s Avalanche (AVAX) tokens, Phoenix Global (PHB), and Frontier (FRONT). We have proven that our system and concept of liquidity mining is able to serve token issuers’ needs efficiently and effectively.
This week, we will be launching a new 3-month liquidity mining campaign for QuarkChain with a total reward pool of USDT 9,000!
- Start date: January 12, 2021 12:00am UTC
- Total reward pool*: USDT 750/week for 12 weeks
- Reward token: USDT
- Eligible token pairs: QKC/ETH
- Eligible orders: maker orders placed with spreads of 2% or lower
- Exchange: binance.com
🧐 New stuff in Hummingbot Academy
We introduced a new section on our website called Hummingbot Academy. Its goal is to teach new and existing users about new strategies and other ways to run Hummingbot better!
New arbitrage opportunity spotted: Wrapped CELO
Are you looking for an easy way to take advantage of CELO and cUSD arbitrage opportunities between Uniswap and centralized exchanges? Hummingbot is the easiest way to do it because it offers an Automated Market Maker arbitrage strategy (
amm-arb). We go through how to set up your bot to search for these profitable opportunities in the latest Hummingbot Academy article!
Risk management: Using TradingView and webhooks
Mitigating risk is essential for effective market making. Market makers look to do this by utilizing strategies and tools available to them. For example, Hummingbot has many advanced market making settings that allow users to customize their trading experience and create their own strategies. Hummingbot even supports the use of telegram bots to allow you to constantly monitor your bot from your phone.
In this article, we explain the advantages of using TradingView alerts and the steps required to create and connect them to your Hummingbot to help streamline and automate your trading experience.
💃🕺 Hummingbot 🆚 Cryptohopper: Which one is better for liquidity mining?
Back in 2019, we investigated 12 bots based on their relative ease of use of installation, configuration, and operation in two blog posts, Bot reviews, part 1 and Bot reviews, part 2.
This time, we decided to do a more in-depth comparison of Cryptohopper against Hummingbot in terms of general features and market making parameters.
Cryptohopper is a commercial web-based application while Hummingbot is a free and open-source command-line application. We selected Cryptohopper because it also has a market making feature that's not available for many crypto trading bots, so you can actually use it to do liquidity mining on Hummingbot Miner, rather than running the open-source Hummingbot software.
In addition to making an apple-to-apple comparison of features, we will also run the bots to earn rewards on Hummingbot Miner with both trading bots, so that you can make better decisions on which software to use for liquidity mining.
🔝Top liquidity miner interview featuring MrBig1964
This interview features MrBig1964, who is one of our Eagle Club members and has been trading cryptocurrency and Forex for years. In his interview, he emphasizes the compounding effect of daily small profits (0.6-0.7% in his case) and suggests fellow traders do stay calm and do not be greedy.
🍿 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.
🦐 The Block’s Year in Review 2020: Ten developments that define the crypto trends in 2020
🥕 The Block’s Digital Asset Outlook 2021: The report covers the state of the market, investment trends, decentralized finance, and other thematic trends to watch for in 2021
💬 Get involved!
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