Liquidity mining: September recap

Blog»Liquidity mining: September recap
september-recap

Carlo P. Las Marias

2020-10-01 · 3 min read

Liquidity mining participation dropped off at the beginning of September after the market experienced a period of extreme volatility and a sell-off. Participation spent the majority of the month recovering.

We have seen just over 700 unique miners participate in providing liquidity. From March 2020 to September 2020, order book depth created by liquidity miners generated $125.6 million of traded volume. Meanwhile, the rewards paid out to miners has totaled to date has totalled only USD 96,104 equivalent, resulting in very cost-effective market making for token issuers.

There were no new liquidity mining campaigns launched in September as our focus had been on preparing to launch liquidity mining on KuCoin with 4 new campaigns. Unfortunately, given the recent security incident with KuCoin, the launch has been postponed and we are currently evaluating and deciding the next exchange to integrate with for liquidity mining. However, we are about to launch a new campaign on Binance soon, so stay tuned!

7-month Summary Statistics

For a discussion and explanation of some of the metrics we are tracking, please see our blog post - Liquidity mining: April recap.

Through September 30, 2020

  • Filled order volume surpassed $120mm in September, bringing the total overall miner traded volume to $125.6 million.

  • Total distinct miners surpassed 700! Currently, we have had 3,479 total sign-ups, with 781 distinct miners having participated and earning rewards

  • USDC equivalent 96,104 cumulative rewards paid out

  • The top ranked miner has earned equivalent USDC 14,565 rewards in total and #2 miner has earned equivalent USDC 6,702

Number of Distinct Miners

distinct-miner
distinct-miner1

We saw 38% growth in the number of distinct miners in September.

Total Number of Bots

total-bot
total-bot1
ave-bot-per-campaign

Open Order Volume

Total Value Locked

oov
oov1
ave-OOV

Average Amount of Liquidity (Open Order Volume) per Bot

Currently approx. $516 of open order volume/liquidity has been created per bot.

ave-usd

Filled Order Volume

filled-order
filled-order1
filled-order2

Filled Volume as % of Binance Totals

binance-percent
overall-percentage

Miners filled order volume as percentage of Binance filled order volume is at 4%, across eligible pairs and as high as 20% for MFT campaigns.

Filled order volume vs. reward pool

While liquidity mining does not compensate miners for filled order volume, the increased liquidity and order book depth created by miners does translate into increased trading efficiently and, consequently, additional trading volume. Trading volume is important for issuers since exchanges typically use traded volume as a benchmark more deciding whether or not to maintain or remove token listings.

reward-vs-filled-order
  • Last month, a total reward pool of equivalent USDC 96,427 yielded $125.6 million of traded volume across campaigns¹

  • On average, a weekly reward pool of equivalent USDC 750 (our minimum recommended amount for issuers for a campaign), resulted in monthly average of $3.7 million filled order volume¹

Note 1) Liquidity mining does not reward for filled order volume nor does it guarantee a certain amount of filled order volume. The above figures are based on historical data from currently running and historical liquidity mining campaigns.

There was a range across campaigns, which can be seen in the following charts:

total-reward-vs-filled-order

Learn More


For exchanges and projects who would like to learn more about liquidity mining, please contact us at partnerships@hummingbot.io.

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