Hummingbot Bi-weekly #38

v0.28.1 hotfix shipped! New market making tutorial videos, guest post on inventory risk and more.

Welcome to the Hummingbot Bi-weekly, your regular dose of updates about new features 🤖, upcoming events 🎉, and announcements from our rapidly expanding community 👪! 

Hope this issue finds you and your ❤️loved ones safe and strong 💪. Subscribe to never miss any new issue.


🚀 We shipped v0.28.1 hotfix release

Last Friday, we published the v0.28.1 hotfix release. This release fixes issues with the Docker build, the Kraken connector, and other bugs. We expect v0.29.0 to be released in approximately 2 weeks.

See the release notes


🙋🏻‍♂️ Note from our CEO: The Battle Hymn of the Republic

July 4th is Independence Day here in the US, and bands all over the country will be playing The Battle Hymn of the Republic:

Many Americans are probably familiar with the first few verses, but you have to listen 3 minutes in for the best part, the haunting final verses that end in the inspiring crescendo "…let us die to make men free!"

Julia Ward Howe wrote The Battle Hymn of the Republic in 1861, and it was published on the front page of a fledgling startup called The Atlantic Monthly.

The song was an instant hit, becoming one of the Union army’s most oft-played songs, and an enduring mainstay of American patriotic celebrations afterwards. Some historians say it was repeatedly played because the last verse served as a blunt reminder to certain Northern soldiers of their purpose: "As he died to make men holy, let us die to set men free."

Howe, an abolitionist and suffragist, devoted her life to demanding that women and blacks were equal to white men. She believed that until that happened, America could not fulfill the true intent of the Declaration of Independence, "that all men are created equal." Cast in that light, the song’s militantly religious tone must be appreciated alongside its true purpose, to hold America accountable to its ideals.

Today, The Battle Hymn of the Republic is enshrined as a fixture of American patriotism. Next week, Americans of all stripes will listen to it played in Independence Day celebrations. I hope we can appreciate its history as well.


But what really got me were the eloquence and diversity of the comments to the Youtube video above. A sample:

Many of the comments are from immigrants, both current and prospective. As an immigrant myself, I understand why. The values of freedom and human rights enshrined in the founding of America are incredibly inspiring for those of us who grew up in oppressive regimes or still live in them today.

This Independence Day, America the country is wrestling with the dissonance between its founding set of liberal democratic ideals versus the ugly reality of how it has treated its most vulnerable citizens, then and now. Real change may finally be coming, but we don’t yet know how long it will take.

However, what makes me optimistic is that these ideals are universal and not limited to America’s physical borders.


Hummingbot has been shaped by these ideals. Our 4 founders are all American immigrants, and our experience as immigrants led us to prize the ideals of individual empowerment imbued in the original meme of “the American Dream.” That’s why we first built a protocol that allows anyone to start a hedge fund and later pivoted to Hummingbot.

Today, Hummingbot is a team of 15 people living in the USA, Phillippines, Malaysia, Australia, and Nigeria, working together on a cause in which we all strongly believe: making the most sophisticated trading software in the world open source and freely available to anyone in the world.

On this turbulent July 4th, I’m proud that Hummingbot is a global company with American ideals.

Happy Independence Day,

Michael Feng
@fengtality


💡 Zilliqa liquidity mining comes to an end with successful results

Over the past few weeks, we have seen remarkable outperformance in Zilliqa tokens as the company has delivered on several platform initiatives and has continued to grow its global community. 

With liquidity mining, Zilliqa was able to solely rely on the group of individual liquidity miners to promote liquidity without spending large amounts (fees and token inventory) on professional services provided by market making firms. So far during the 3-month liquidity mining campaign period, 307 distinct liquidity miners participated and earned rewards. They were accounting for as much as 10-20% of total ZIL trading volume on Binance from March to April, and as much as 30-60% for the less liquid trading pairs (ZILETH and ZILBNB). This result was considered successful by both of the Hummingbot and Zilliqa communities. 

Since Zilliqa has graduated from the “long-tail” of crypto assets and has become more mainstream, it has decided to conclude the liquidity mining campaign at the end of June and cease spending on market making in general. We would like to thank all of the miners who helped support the Zilliqa token and liquidity mining campaign over the past few months.

Learn more


🌊⛏️ Participate in Mainframe liquidity mining campaign and earn rewards now!

Since the launch of the Mainframe liquidity mining campaign, we’ve already got over 60 unique liquidity miners who have participated in this campaign. The cumulative filled order volume as of last Wednesday was almost US$1 million, and accounted for 10%-85% of its daily filled order volume on Binance depending on the trading pairs.

Have you joined the Mainframe liquidity mining campaign? Get a share of the USDC9,000 reward pool now! ✌

Join today


🎤 Guest post - My take on market making and inventory risk

Our blog will be providing a space for community members who produce quality content on market making, crypto algo trading, trading strategies and insights. In the future, we plan to feature more high quality guest posts.

This below guest post is adapted from a community member(Discord ID: phgnomo#1429)'s comment in our Discord group.

The goal of a market marking strategy is to fill both opposing orders as soon as possible. So the usual movement of the price of an asset is:

  • stay on a range of prices

  • deviate from the range, starting an upward or downward trend

  • get back to a range on a different level

    Read on


📈 Watch market making school - new tutorial videos for crypto market making

In the past week, we’ve created a bunch of new market making tutorial videos to walk users through the concept of market making, the market selection strategy and the trading strategy. We’ll keep produce new content in this series so that we’ll eventually clear most of your questions. If you haven’t watched them yet, watch them here -

Introduction to market making
Picking the right market
Building a market making strategy using Hummingbot - Part 1
Building a market making strategy using Hummingbot - Part 2

🍿 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

🥯 After the launch of COMP (Compound’s native governance token) on Uniswap recently, its price quickly shot up from $16 to more than $380. Why is it happening? Any potential manipulations? What is yield farming? There are two pieces that may interest you - Beware illiquid markets: lessons from COMP price action and Aquaponic Yield Farming.

🥨 AMM A.K.A Automated market maker has become an increasingly popular term recently. This post analyzes the current state of AMMs, which may help you gain a better understanding of the AMM landscape and the various factors affecting it.


💬 Get involved!

Download | Website |  Blog | Twitter | Discord | Reddit | YouTube | Meetup

Hummingbot Bi-weekly #37

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

Welcome to the Hummingbot Bi-weekly, your regular dose of updates about new features 🤖, upcoming events 🎉, and announcements from our rapidly expanding community 👪! 

Hope this issue finds you and your ❤️loved ones safe and strong 💪. Subscribe to never miss any new issue.


🚀 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.

Read the release notes


🙋🏻‍♂️ Note from our CEO: Liquidity Mining is about Community

Hey everyone,

Liquidity mining is 🔥🔥🔥

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: “Is 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 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.

Sincerely,

Michael Feng
@fengtality


🌊⛏️ 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.

Join today


📈 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

fov1
  • 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

Learn more


🍿 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.


💬 Get involved!

Download | Website |  Blog | Twitter | Discord | Reddit | YouTube | Meetup

Hummingbot Bi-weekly #36

New Celo-arb strategy, New top miner interview, LAST free training session, etc.

Welcome to the Hummingbot Bi-weekly, your regular dose of updates about new features 🤖, upcoming events 🎉, and announcements from our rapidly expanding community 👪! 

Hope this issue finds you and your ❤️loved ones safe and strong 💪. Subscribe to never miss any new issue.


🙋🏻‍♂️ Note from our CEO: Let’s stop lying to ourselves

Hey everyone,

Let’s stop lying to ourselves.

Sincerely,

Michael Feng
@fengtality


🆕 Celo X Hummingbot: New celo-arb strategy

Hummingbot is excited to announce that it is working with Celo on a new arbitrage strategy called celo-arb, which will allow users to arbitrage between the cGLD/cUSD trading pair on the Celo blockchain and this pair on any other exchanges supported by Hummingbot. The goal of this project is to support the Celo ecosystem’s stability mechanism.

This custom celo-arb strategy will be launching on Hummingbot’s open-source code base in next release!

Learn more


😎 New top liquidity miner interview featuring Neohowie

It has been almost three months since we launched Liquidity Mining. We are glad to see many miners join liquidity mining and compete with each other fiercely.

In this post, we introduce you to Neohowie, who ranked into Weekly Top 10 a few times in the past. He started to dip his toe in crypto in 2015, and has learned a bunch about market making from participating in our liquidity mining program. Let’s dive into his journey!

Get the scoop


🌊⛏️ Solana liquidity mining campaign has kicked off

Solana liquidity mining campaign has kicked off last week, which has been one of the most popular campaigns on our platform🤩!

Join us to grab a piece from the USDC7,500 reward pool over the next 11 weeks. The eligible token pairs are SOL/BTC, SOL/BUSD, and SOL/BNB.

Join NOW!


🎒 FREE Liquidity Mining group training videos

Thanks to everyone who attended our free training sessions during the past 3 months! Yesterday, we had our last advanced training session schedule for more experienced users. We’re going to rethink the content to make it more engaging, but overall we plan to invest into education and training of the community.

In case that you didn’t join this last session, you can check out the below video recordings of our past training sessions:


🍿 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

🍷 Ethereum is attempting to transfer its entire economy onto a new network, Ethereum 2.0, which is set to launch as early as July 2020. BitMEX Research examines Ethereum 2.0 in its latest research paper.

🧀 According to CoinTelegraph, the number of women in the cryptocurrency industry increased by 43.24% in the first quarter of 2020. Here’s a collection of crypto women’s work on cryptocurrency, blockchain technology and Bitcoin - Cypherpunk Women.


💬 Get involved!

Download | Website |  Blog | Twitter | Discord | Reddit | YouTube | Meetup

Hummingbot Bi-weekly #35

Shipped v0.27.0 release, Solana campaign starting next week

Welcome to the Hummingbot Bi-weekly, your regular dose of updates about new features 🤖, upcoming events 🎉, and announcements from our rapidly expanding community 👪! 

Hope this issue finds you and your ❤️loved ones safe and strong 💪. Subscribe to never miss any new issue.


🙋🏻‍♂️ Note from our CEO: Software should be free

Hey everyone,

When we open sourced Hummingbot one year ago, our banking and hedge fund ex-colleagues thought we were crazy. They couldn't understand why we would make professional-grade market making software free and publicly available, instead of keeping it secret and selling it for a high price.

From our perspective, software should be free. This is the core tenet that has fueled the open source software movement over the past 30 years. Today, billion-dollar companies such as Red Hat, MongoDB, and Confluent are built on open source technologies.

An open codebase allows everyone to contribute. The v0.27.0 release features 3 external contributors, and other contributors are working on features and fixing bugs in our public roadmap. In addition, trust is vital in an industry where anyone can steal your coins if they have your private keys, and the only way that we can earn our community's trust is to make Hummingbot open source and publicly audit-able.

But the most important reason why Hummingbot is open source is that it's not a black box, but rather merely a dependable, well-crafted tool that helps you build and automate a trading strategy.

Hummingbot handles the low-level grunt work of maintaining API connections to exchanges and making lots of API calls every second, but it's our users who are doing the high-level work: doing the research to construct a strategy and figuring the right mix of parameters to express that strategy in different market conditions. The strategy is the real secret sauce, which is why Hummingbot strategy config files are stored locally and never shared externally.

By separating the strategy from the software, we can make the software free.

Sincerely,

Michael Feng
@fengtality


🚀 We shipped new Hummingbot v0.27.0 today!

This release contains a number of new features for advanced users, along with many core stability improvements and bug fixes to the Hummingbot client.

We're also starting to see more external contributions from the Hummingbot community. See here for more information on how to contribute to Hummingbot.

Read the release notes


🌊⛏️ Solana liquidity mining campaign starting next Monday

We are excited to announce that the Hummingbot and Solana teams have been preparing for the launch of a liquidity mining campaign, in which our communities will be able to participate in contributing liquidity for the SOL tokens and earn token rewards.

Change in launch date

The Solana campaign is original scheduled to kick off on May 19, 2020 12:00am UTC. Due to technical issues, we are going to postpone this campaign for 1 week. Join us on May 26, 2020 12:00am UTC here.

In the meanwhile, you will have more time to upgrade and setup their bots, and explore the new features of Hummingbot that are rolling out in v0.27.0.

Campaign Terms

The Solana campaign will offer total rewards of USDC 7,500 over 12 weeks. The eligible token pairs will be SOL/BTC, SOL/BUSD, and SOL/BNB. For full terms of the campaign, please see liquidity mining campaign terms.


🎒 FREE Liquidity Mining group training sessions

Our free training sessions have been well received by the community during the past few weeks, so we have decided to host more sessions to get users onboard. The detailed schedule is as below:

May 19: Advanced

The Advanced training session will cover:

  • Using multiple orders with inventory skew

  • Using hanging orders mode

  • Ways to handle market volatility

May 26: Basic

The basic training session will cover:

  • The basic concepts behind market making

  • How to install Hummingbot

  • Configuring a market making bot

  • Earning token rewards with Liquidity Mining

  • How to assess your bot’s performance and mining returns

Spots are limited for each training session, so RSVP today to reserve your preferred day and time!

RSVP


🍿 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

🍈 CoinMarketCap has updated exchange ranking system to include Web traffic. Take a look of the new ranking!

🍇 Matt Huang of Paradigm outlined an intuitive framework for evaluating Bitcoin as a new monetary asset.

🌭 Matteo Leibowitz, The Block Research Analyst, presented his take on Open Finance value proposition at the virtual Ethereal conference through the lens of MakerDAO.


💬 Get involved!

Download | Website |  Blog | Twitter | Discord | Reddit | YouTube | Meetup

Hummingbot Bi-weekly #34

Welcome to the Hummingbot Bi-weekly, your regular dose of updates about new features 🤖, upcoming events 🎉, and announcements from our rapidly expanding community 👪! 

Hope this issue finds you and your ❤️loved ones safe and strong 💪.Subscribe to never miss any new issue.


🙋🏻‍♂️ Note from our CEO

Hey everyone,

I’m going to start sharing a brief note about what we’re working on at Hummingbot in these bi-weekly newsletters, as well as the principles that inform our work.

We live in a time where people everyone feel more disconnected than ever. As CEO of an open source project, I’m lucky to be able to chat with our users all day and every day, so I want to extend a bit of that connection to our broader community.

At Hummingbot, we think about lot about the tradeoffs of simplicity versus complexity. Algorithmic trading is inherently complex, so in order to fulfill our mission of democratizing algo trading, we have to make it simpler. However, trading is also a competitive sport, so if algo trading were so simple and easy that you could just push a button and let a bot handle everyone, competition would drive returns down to zero.

Therefore, we’ve designed Hummingbot to be simple/easy to get up and running, but we also try to give advanced users many different ways to adjust and control their bots. We are leaning into this approach and will be doing more to encourage experimentation and customization, which is why we’re introducing dynamic controls with the upcoming Scripts feature.

Finally, we’re tapping into the collective power of the Hummingbot community. I’m excited to unveil our Hummingbot public roadmap (see below) and will be taking a more active role in working with external developers to improve the open source codebase.

Sincerely,

Michael Feng
@fengtality


🛣️ Introducing the Hummingbot public roadmap

We’re excited to announce our new public roadmap for the open source Hummingbot client!

All issues in our Github repository are now categorized here and status of bugs and enhancements are tracked in real-time. If you create an Github, it will show here automatically.

We encourage contributions from our community! Many of you have already contributed exchange connectors, enhancements, and fixes, which are listed on our community contributions page.


📈 Liquidity mining: April recap

Within the first two months (March 3 through April 30) that liquidity mining has gone live, we have achieved some promising results showing that a community of liquidity miners can rival the capabilities of professional market makers. We cannot thank our community enough for participating in liquidity mining, providing feedback, supporting us, and spreading the word!

Below is a summary of some of the first two month's stats.

In the past two months, our miners have:

  • Filled $20 million of filled order volume (30% of total Binance trading volume for our sponsors)

  • Earned almost $25,000 in rewards. Each miner is earning $1.59 per day in rewards, while the top miner has earned over $3000.

    Learn more


📈 Top liquidity miner interview featuring Lorenzo Boyice

It has been just over two months since we launched Liquidity Mining. With heated competition, miners have been working very hard to rank higher on our leaderboard!

In this post, we introduce you to Lorenzo Boyice, fairly new to our community but already ranked into Weekly Top 10 for the past few weeks. He is a software engineer and started investing in crypto in late 2018/early 2019. With liquidity mining, his monthly return is around 3-5%.

Get the scoop


🎒 FREE Liquidity Mining group training sessions

Our free training sessions have been well received by the community during the past few weeks, so we have decided to host more sessions to get users onboard. The detailed schedule is as below:

May 12: Basic

The basic training session will cover:

  • The basic concepts behind market making

  • How to install Hummingbot

  • Configuring a market making bot

  • Earning token rewards with Liquidity Mining

  • How to assess your bot’s performance and mining returns

May 19: Advanced

The Advanced training session will cover:

  • Using multiple orders with inventory skew

  • Using hanging orders mode

  • Ways to handle market volatility

Spots are limited for each training session, so RSVP today to reserve your preferred day and time!

RSVP


🍿 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

🥟 Adam Cochran of MetaCartel wrote a comprehensive analysis on the top 10,000 Ethereum addresses to learn about liquidity, profitability, market manipulation and what Whales are doing with their tokens.

🌯 Dmitriy Berenzon of Bollinger Investment shared a great overview on Constant Function Market Makers and the future directions of CFMM designs and use-cases.


💬 Get involved!

Download | Website |  Blog | Twitter | Discord | Reddit | YouTube | Meetup

Loading more posts…