In our continual effort to improve the Hummingbot Miner platform and user experience, we are announcing the following changes to the liquidity mining rewards payment terms:
When we launched our liquidity mining platform, gas prices were 10 gwei and the price of Ethereum was around $224. Remember those days, when Ethereum was used for things other than just yield-farming??
At the time, token transfer transactions would cost only a few cents in gas. Fast forward to today, where the new normal is gas prices in the hundred to several hundreds of gwei, which, coupled with Ethereum prices ranging from 350-400, translates into gas costs for token transfers anywhere from a handful of dollars to some days exceeding10. Because we have many users, such as new miners getting started with smaller trading amounts, earning only a few dollars or less in weekly rewards, it was not uncommon for gas costs to exceed the actual amount of rewards paid out! Obviously, this is not sustainable, especially since we make hundreds of rewards payout per month.
To address this initially, we imposed a minimum reward amount for payment, currently set at 50. However, this was not a long-term solution. Obviously, it degrades the user experience, and in some cases, discourages some traders from getting started or traders from participating altogether if they are trading smaller amounts. Not to mention, even with a50 reward payout, incurring a gas cost of $3-10+, is still extremely inefficient and unsustainable.
As a solution to this, we are rolling out USDT-TRON token payments. This will allow us to pay out USD-based liquidity mining payments to users without having to impose minimum reward amounts.
USDT-TRON is Tether implemented on the Tron blockchain using the TRC20 token standard, Tron’s equivalent of the ERC20 token. Read more here. It’s basically the same as USDT, but represented on the Tron blockchain rather than the Ethereum blockchain.
The main reason we chose to migrate to USDT-TRON payments is for the convenience of miners. Binance.com, which is where our current liquidity mining campaigns are run, as well as many other major exchanges, support TRC20 USDT deposits and withdrawals. So actually, anyone participating in Hummingbot Miner campaigns effectively already has a USDT-TRON address: miners can simply get a TRC20 deposit address for USDT for their Binance account:
Using a TRC20 USDT deposit address in Binance allows miners to send rewards to their trading accounts where they were already trading and earning rewards in the first place. Also, most campaigns include a trading pair with a USDT quote asset, so it all neatly ties in together.
From a tech perspective and for our infrastructure, operating on the Tron blockchain is very similar to Ethereum. But of course, with TRX price at 0.026 (vs. Ethereum at356), gas costs (at least currently), are only cents or fractions of cents.
In order to receive USDT-TRON payments, miners can go to Settings in the Hummingbot Miners app and input their Tron wallet address:
⚠️ Note: be careful and double check your wallet address when entering it into the miners app. CoinAlpha is not responsible for any loss of funds due to inputting an incorrect or invalid wallet address. Read more in the Liquidity Mining Policy.
If you have previously earned USDC rewards that are not paid out as of the October 9 (UTC) payment date, the accrued USDC rewards will automatically convert into USDT.
Miners who provide a Tron wallet address will be paid out in USDT-TRON on the next available payment date. USDT reward payments to Tron wallet addresses will not be subject to minimum rewards amount requirements.
If you still have not entered a Tron wallet address after October 9, you will be paid out in ERC20 USDT to your Ethereum wallet address. However, you will be subject to minimum payment amounts.
Currently, we have one campaign (iExec - RLC) paying out in native ERC20 tokens. In the future, we may also have additional issuers that choose to pay out in ERC20 tokens. Liquidity mining payments for those campaigns will continue to be paid out on the Ethereum blockchain and be subject to minimum payment amounts.
For such campaigns, will also work with the issuers to consider and explore more efficient alternatives for token payments, if possible.
We continue to evaluate improving the Hummingbot Miner platform and user experience. We are also working with other layer 1 blockchains which may provide USD-stable coin alternatives to Ethereum that we may integrate into Hummingbot Miner in the future.
🏛 Token issuers: contact the team at firstname.lastname@example.org to learn more about running liquidity mining campaigns on Binance.com or to suggest the next exchange for us to integrate with!
🏦Exchanges: contact email@example.com if you’d like to bring Hummingbot and liquidity mining to your exchange!