Borderless Capital and the Algorand Foundation announce that they have respectively invested in, and partnered with Hummingbot, to bring liquidity mining to the Algorand Ecosystem, as part of their ongoing efforts to promote and grow DeFi and broader Finance 3.0 initiatives on Algorand.
The first part of this initiative with Hummingbot includes the launch of a liquidity mining campaign for Algo . This campaign will use the Algorand blockchain for the distribution of liquidity mining rewards, which will be a combination of both Algo tokens and USDt on Algorand. Use of the Algorand blockchain for USDt/stablecoin payments provides an efficient and cost-effective alternative to Ethereum-based payments. As part of this integration Hummingbot will be supporting future asset issuers on Algorand.
The recent boom in DeFi volume has significantly elevated Ethereum gas prices, making even simple transactions like sending payments prohibitively expensive. This presents a massive opportunity for other Layer 1 protocols to provide more efficient payments alternatives, and we’re thrilled to be working with Borderless Capital and Algorand to take on this problem.
-- Michael Feng, Hummingbot CEO
Liquidity is a core piece for healthy markets. Hummingbot is building the next generation liquidity platform by empowering users and traders to participate in the markets with the right incentives. We are excited to partner with the Hummingbot team and bring more liquidity capabilities to the Algorand ecosystem, starting with ALGO and USDT on Algorand and expanding to other ASA (Algorand Standard Assets) issuers in the future.
-- David Garcia, CEO and Founding Managing Partner at Borderless Capital.
We will shortly be kicking off a new 6-month liquidity mining campaign for Algorand that will start on October 27, 2020 12:00am UTC! The campaign will have a reward pool totalling $30,000 in ALGO and USDT ASA tokens, offered to participants for providing liquidity in Binance.com for Algo.
Start date: October 27, 2020 12:00am UTC
Total reward pool²: Algo and USDT ASA tokens with a current value of approximately 1,250 per week (total of30,000 over 24 weeks)
Eligible token pairs: Algo/USDT, Algo/BTC
Eligible orders: Maker orders placed with spreads of 2% or lower
The Hummingbot Miners liquidity mining platform rewards users for providing liquidity for specific token pairs. The platform is non-custodial; users trade their own assets out of their own accounts to participate. Participants earn rewards by placing maker orders for Algorand tokens and contributing to order book depth. We aim to create a fair, open, and transparent liquidity mining system for both participants and token projects.
The objective of Hummingbot Miners is to align rewards with the risks that traders/market makers take: the longer and more consistently participants place orders, the tighter the spreads, and the larger the sizes, the more rewards participants earn. Participants and token projects will have access to real-time data on the campaign and market-making activity.
The Algorand liquidity mining campaign will allow members of both the Algorand and Hummingbot communities to participate in market making for ALGO tokens. By participating, members of the Algorand community can also support their favorite project while earning rewards.
While previously using Ethereum ERC20 payments for liquidity mining payments, growing Ethereum gas costs have made this extremely inefficient and prohibitive, with ordinary token transfers sometimes even exceeding $10! As part of ongoing efforts to optimize our platform, alternative payment gateways have been evaluated. The Algorand blockchain already supports USDt Tether as well as USDC stablecoins natively, giving us an optimal method for paying out stablecoins. Algorand USDt is already supported by a growing number of major centralized exchanges.
We are initially rolling out Algorand USDt payment method for the Algorand liquidity mining campaign and are exploring ways to extend this for other liquidity mining campaigns.
The efficiency of the Algorand blockchain allows us to pay out any amount of rewards earned to miners. In contrast, we impose a $50 minimum payment amount for rewards paid out in ERC20 tokens.
To get started using the Algorand blockchain and wallets, use a wallet such as MyAlgo Algorand Wallet. The wallet will be able to receive Algorand tokens and users can simply enable USDT to start receiving Tether. You can look at this tutorial on how to enable USDT on your wallet at MyAlgo.com: How to Add Tether to your Algorand Wallet. Algorand based tokens are supported by a wide range of wallets and are listed here.
Algorand Liquidity Mining Webinar: Wednesday, October 21, 7am PDT
We will be hosting a live webinar to introduce the Algorand community to Hummingbot and Hummingbot Miners. There will be a live demo and we will be answering community questions about the liquidity mining campaign.
Please register for the event here: http://bit.ly/algorand-hummingbot-webinar
Liquidity 2020 Conference
We are also sponsoring a virtual summit focused on liquidity and the latest developments in the cryptocurrency and DeFi space. This will be a great opportunity to learn more about Hummingbot, liquidity mining, as well as hear from some of the other projects at the forefront of DeFi.
Click here to find out more: Liquidity2020.
For full terms of the campaign, please see liquidity mining campaign terms.
To learn more about liquidity mining, see below:
Algorand Inc. built the world’s first open source, permissionless, pure proof-of-stake blockchain protocol for the next generation of financial products. This blockchain, the Algorand protocol, is the brainchild of Turing Award-winning cryptographer Silvio Micali. A technology company dedicated to removing friction from financial exchange, Algorand Inc. is powering the DeFi evolution by enabling the creation and exchange of value, building new financial tools and services, bringing assets on-chain and providing responsible privacy models. For more information, please visit www.algorand.com.
About The Algorand Foundation
The Algorand Foundation is a not-for-profit organization that has a vision of a borderless, frictionless economy built on public, decentralized blockchain technology. The Foundation envisions a wide breadth of applications being built on the Algorand protocol by a new, broader community of blockchain and mainstream developers. The Foundation is committed to facilitating this innovation in a sustainable and eco-friendly manner. For more information, visit https://www.algorand.foundation.
About Borderless Capital
Borderless Capital is a modern financial institution investing capital and co-building financial products that accelerate access, bootstrap adoption, and create value globally through the Algorand Borderless Economy. We do not stop with just investment. We also provide guidance and mentorship to grow our portfolio companies into successful and category leading businesses. As a thought leader in blockchain with deep expertise in the Algorand ecosystem, we advise our portfolio companies on go-to-market strategies to effectively build their network effect. In short, we leverage the synergy of our portfolio, partner network, and domain expertise to create value for everyone. For more info: https://www.borderlesscapital.io.
Important notes and disclaimers
Please review the Liquidity Mining Policy for the full disclaimer, including policies related to the use of Hummingbot.
The content of this Site does not constitute investment, financial, legal, or tax advice: none of the information contained on this Site constitutes a recommendation, solicitation, or offer to buy or sell any digital assets, securities, options, or other financial instruments or other assets, or to provide any investment advice or service.
Eligibility requirements: participation in liquidity mining is subject to eligibility requirements as specified in the liquidity mining policy.
No guarantee of profit: CoinAlpha does not claim that liquidity mining and participation in liquidity mining campaigns will be profitable, however measured, for the user. Liquidity mining yields are a measure of rewards compared to assets used for liquidity mining, excluding any gains or losses incurred from the underlying trading strategy.
Campaign terms subject to change: terms may be modified over the course of the campaign. We will announce any changes, if any, on our discord and reddit; the most up to date terms will also be posted on the liquidity mining campaign terms and the miners app.
50% of the reward pool will be denominated in Algo tokens, with the final amount to be determined just prior to the campaign launch based on the indicated dollar amounts shown.