Liquidity Mining Quick Start

Hummingbot Academy

OverviewQuickstartLiquidity MiningAMM ArbitrageCelo Arbitrage

Liquidity Mining Quick Start

This guide shows users how to create an account on Hummingbot Miners and connect their Binance accounts to the Hummingbot Miner app in order to participate in liquidity mining campaigns and earn token rewards.

Note that users earn rewards for trading, creating orders, and running trading bots for the tokens in the respective liquidity mining campaigns. This is not covered in this guide; to learn more about setting up trading bots, go here: Hummingbot Quickstart.


1. Create a read-only Binance API Key

Creating an API Key requires 2FA-enabled.

  1. Navigate to API Management in your Binance account:

  1. Enter a name for your new API Key
  2. Verify the new key

binance name key

  1. Store your API Key and Secret Key, then select Edit restrictions
  2. Unselect Enable Spot & Margin Trading
  3. Hit Save 🏁

binance set read only

2. Create a Hummingobt Miner account

  1. Navigate to Hummingbot Miner, and click on Log in
  2. Select Sign up

sign up 1

  1. Enter your email address, read and agree to the Terms of Service, then click on Create account
  2. Check your email to confirm your account

sign up 2

  1. On the Hummingbot Miner email, click on Log in to Hummingbot Miner
  2. πŸ‘ You should now be logged into Hummingbot Miner with your new account.

sign up 3

3. Connect your Binance account to Hummingbot Miner

  1. Go to the Settings tab and select Connect binance
  2. Input your read-only API keys 🏁

miner connect binance

4. Enter a wallet address for your rewards

Each campaign has different reward terms and may pay out in different tokens. For campaigns that you are participating in, make sure you enter your respective wallet address. For example, if you are participating in a campaign that is paying out in ERC20 tokens, enter a valide Ethereum wallet address to receive your rewards.

  1. Under the Connect wallets section, choose the wallet you want to input and select Connect.
  2. Enter the wallet address 🏁

miner connect wallet


How are liquidity mining rewards earned?

Liquidity mining rewards are earned by users for creating maker orders and contributing to the order book depth for specific tokens and trading pairs.

  1. Rewards for a campaign are distributed equally into each minute during a reward period. There is a fixed amount of token rewards that is shared by participating miners for each minute snapshot.
  2. Users can participate in a snapshot by having outstanding maker orders in that snapshot; the more snapshots a miner participates in, the more rewards they are able to accumulate.
  3. Within each snapshot, participating miners are allocated a portion of the reward pool. Their allocation depends on (1) how tight their order spreads are, and (2) how large their order sizes are, relative to all other miner.
  • The tighter a miner's order spreads are, the more weight their orders get
  • The larger order size, the larger the weight.

For a more detailed discussion, please view this blog post: Demystifying liquidity mining rewards.


View your rewards

Go to the Dashboard tab in Hummingbot Miner and the Rewards sub-tab to view your rewards:

miner rewards tab

  1. Your total rewards (shown in ~USD value) for the current reward period. This card also shows the time remaining in the current reward period
  2. Your rewards earned in the previous reward period, and the time remaining until those rewards are to be paid out
  3. Total rewards all-time
  4. View a graph of recent rewards by trading pair; mouse-over shows reward breakdown for a specific snapshot
  5. Table of rewards earned from recent snapshots
  6. Clicking on a period rewards shows a breakdown of rewards as was as the actual amount of tokens earned in that snapshot

Reward payouts

Go to the Dashboard tab and the Payouts sub-tab view your payout details:

miner payouts tab

Rewards are calculated in weekly periods and paid out 3 days after the end of each weekly period.

  1. The rewards earned in the previous that are due to be paid out. This card also shows the time remaining until the rewards are to be paid out
  2. Amount of rewards earned but yet to be paid
  3. Token amounts earned
  4. Due to rising gas prices for Ethereum, ERC20-based rewards are subject to a mininum payment threshold. Only once the minimum has been reached will the earned rewards be paid out; otherwise, the rewards continue to accrue and accumulate
  5. USD value of rewards earned each week
  6. Amount of rewards each week that have been accrued but not yet paid out
  7. Historical amounts of rewards paid out

Payout wallets

The reward token for liquidity mining campaigns may vary by campaign. Make sure to enter your reward wallet addresses in Hummingbot Miner: settings. If you have not yet provided a valid wallet address for a liquidity mining campaign, the rewards will accrue and be paid out only after you have provided a wallet address.

Top liquidity miner interview featuring Vik

Β· 61 min read

Top trader interview with Harry Yeh of Binary Fintech Group

Β· 4 min read

Top liquidity miner interview featuring Lorenzo Boyice

Β· 7 min read

Ask Me Anything: Zcoin

A conversation with Reuben Yap from Zcoin about Hummingbot, market makers, and liquidity mining

Β· 8 min read

Hummingbot

Home
24/7 Support

Liquidity Mining

Company

Community

Legal

Β© 2020 CoinAlpha, Inc.