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.
🙋🏻♂️ 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,
💡 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.
🌊⛏️ 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! ✌
🎤 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
📈 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!