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🤖 Hummingbot Connectors

Hummingbot Connectors

Pecunia.Finance specializes in the creation of DEX connectors for Hummingbot OSS.

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What is Hummingbot OSS?

A freely available, user-friendly, high-frequency trading bot (HFT Bot) which connects multiple centralized and decentralized cryptocurrency exchanges (CEXs and DEXs respectively), and allows average persons and skilled traders to execute an array of customizable financial strategies.

The core value proposition of Hummingbot for CEXs and DEXs is to become accessible for automated arbitrage and attractive for liquidity providers.

Without HTF Bots connected to an exchange, the prices of tokens fluctuate based on user-executed bids and asks, which can lead to slow market corrections. The speed of the market-price corrections can influence users exchange preference.

Hummingbot would allow algo-traders to successfully arbitrage on low depth pools, increasing trading volume and consequently increasing the profitability of liquidity providers (LPs). The increase in the pools APY encourages LPs to add more liquidity, deepening those pools. As pools get deeper, they become more attractive for traders who would trade more consistently on those pools, triggering further interest from LPs. This virtuous cycle would be beneficial for any exchange to increase its TVL and Trading Volume, while allowing the Hummingbot community to easily perform algo-trading.

Multiple trading strategies are built into Hummingbot and can be customized to a significant degree, with the possibility for more to be used or even added to the the program. The strategies can be categorized as market-making, arbitrage, or utility-based. A list of strategies and more information can be found here: https://docs.hummingbot.org/strategies/ .

How does Pecunia.Finance fit into the Hummingbot ecosystem?

Our DAO is among the first, if not the only independent organization which is developing connectors between Hummingbot and DEXs.

Our position has allowed us to build close connections with the Hummingbot Foundation and community, as well as establish standardized processes* and code used across entire ecosystems**.

Using our relationships and experience in contributing to the Hummingbot software, we are able to offer ourselves as a finely-tuned and transparent vehicle for joining the Hummingbot ecosystem and reaping the benefits thereof.

* We are proud to have contributed to establishing foundational standards for working with independent DAOs at SifDAO of Sifchain.
** We are proud of our work as Hummingbot community contributors in creating the Cosmos Ecosystem Interface which will allow easier integration of Cosmos-based exchanges into Hummingbot in the future.

What is Hummingbot Foundation?

The Hummingbot Foundation is a not-for-profit organization established to democratize high-frequency trading by enabling decentralized maintenance and community governance over the open-source Hummingbot code repository.

How do Humminbot Pull Requests work?

Pull Requests must be approved beforehand by the Hummingbot community through a Snapshot submission. Before submitting a Snapshot, contributors are encouraged to submit a post in the Hummingbot forum, to generate some awareness and open communication. Only after the Snapshot has been accepted will the Pull Request be reviewed by the Hummingbot Foundation developers and either changes requested or merged. Find more detail in the diagram here.

How does Maintenance work for Hummingbot Connectors?

After a connector is integrated, any updates or bug fixes which may become necessary are solved with a new bounty, which is a cooperation between the Hummingbot Foundation and relevant exchange. The bounty can be completed by the original connector developers or made open to the Hummingbot community via their bounty board.

The detailed procedure and funding of maintenance for connectors within Hummingbot can be found here.

Appendix

  • Arbitrage: the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.
  • High-Frequency Trading Bot (HFT Bot): algorithmic software which executes automated transactions, using a specified logic (strategy).
  • Hummingbot: an open-source HFT Bot which connects multiple centralized and decentralized exchanges and allows average persons and skilled traders to execute an array of customizable financial strategies.

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