2020-08-31 · 3 min read
Since the launch of the Hummingbot Miner’s Liquidity Mining platform on March 3, 2020, we have been encouraged to see the platform successfully prove that decentralized, community-based liquidity is possible. In the first 6 months of the platform going live, we have managed liquidity mining campaigns for 8 token issuers and we have seen just over 700 unique miners participate in providing liquidity. Over this period, order book depth created by liquidity miners generated $112.3 million of traded volume. Meanwhile, the rewards paid out to miners has totaled only USDC 84,578, resulting in very cost-effective market making for token issuers.
For each campaign, we have seen from 125 to as many as 400 different unique quant/algo traders participating, bringing many new and highly active traders to each issuer’s campaign and successfully diversifying the sources of liquidity for the tokens.
With as little as USD 750 equivalent of rewards per week, liquidity miners are creating consistent order book depth of between 25,000 to40,000 per campaign; this is the actual amount of live orders (committed inventory) in order books at any given point in time.
This is just the beginning. We are rolling out several new features and initiatives in the near future to continue to grow the platform:
Liquidity mining on more exchanges coming soon! We are launching liquidity mining campaigns on KuCoin in the next few weeks, with several other exchanges to follow.
Native token rewards: we have recently started paying out ERC20 token rewards (for RLC) and are rolling out non-Ethereum native token payments in the month of September (coming soon for XZC). The ability to pay out in native tokens is attractive for many issuers and generally makes it easier for them to create and sustain larger reward pools.
We already have commitments and agreements in place with several issuers and exchanges for upcoming campaigns. Additional campaigns and larger rewards pools as well as engaging of additional token issuer and exchange communities should drive additional growth in miners for the platform.
In the past month, we have continued to see strong participation from miners across all campaigns and NULS liquidity mining has completed in the second week of August, read more about it here.
For a discussion and explanation of some of the metrics we are tracking, please see our blog post - Liquidity mining: April recap.
Through August 31, 2020
Filled order volume surpassed $110mm in August, bringing the total overall miner traded volume to $112.3 million.
Total distinct miners surpassed 700! Currently, we have had 2,825 total sign-ups, with 701 distinct miners having participated and earning rewards
USDC equivalent 84,578 cumulative rewards paid out
The top ranked miner has earned USDC 14,576 rewards in total and #2 miner has earned USDC 6,308
We saw 30% growth in the number of distinct miners in August.
Total Value Locked
Average Amount of Liquidity (Open Order Volume) per Bot
Currently approx. $692 of open order volume/liquidity has been created per bot.
Filled Volume as % of Binance Totals
Miners filled order volume as percentage of Binance filled order volume is at 3%, across eligible pairs and as high as 7% for MFT campaigns.
For exchanges and projects who would like to learn more about liquidity mining, please contact us at firstname.lastname@example.org.