2020-11-02 · 4 min read
We have seen just under 900 unique miners participate in providing liquidity on Hummingbot Miner. From March 2020 to October 2020, order book depth created by liquidity miners generated $143.1 million of traded volume. Meanwhile, the rewards paid out to miners has totaled to only USD 109k equivalent, resulting in cost-effective market making for token issuers.
For the month of October, Zcoin paused its campaign and will continue to monitor token liquidity, following the rebranding to the new Firo token. Meanwhile, we launched the Algorand liquidity mining campaign in the last week of October. We also announced the launch of a liquidity mining campaign for NEM’s XEM tokens, which was just getting underway (November 3) as of the time of writing this update. NEM and Algorand are ranked #24 and #52 on CoinMarketCap, respectively, representing the largest market cap tokens to run liquidity mining campaigns on Hummingbot Miner to date.
We had completed the liquidity mining integration for KuCoin and had planned to launch several inaugural campaigns at the beginning of October. Unfortunately due to security incidents with the exchange, we did not proceed with launch and continue to monitor the situation. We are currently in the process of beginning work on a Bitfinex integration as the next exchange to integrate our liquidity mining platform with a target launch date towards the end of December. If you are a token issuer and would be interested in a liquidity mining campaign for your tokens on Bitfinex, please reach out to email@example.com.
The declining yields in DeFi liquidity mining has made Hummingbot Miner a more attractive alternative for traders and token holders who would like to generate yield on their tokens. For more details on comparing the liquidity mining alternatives, please review our two blogs discussing the differences: Hummingbot Miner vs DeFi Liquidity Mining Part 1 and Part 2.
For a discussion and explanation of some of the metrics we are tracking, please see our blog post - Liquidity mining: April recap.
Through October 31, 2020
Filled order volume surpassed $140mm in October, bringing the total overall miner traded volume to $143.1 million.
Total distinct miners surpassed 800! Currently, we have had 3,876 total sign-ups, with 884 distinct miners having participated and earning rewards
USD equivalent 109k cumulative rewards paid out
The top ranked miner has earned equivalent USD 14,565 rewards in total and #2 miner has earned equivalent USD 7,015
Miners have earned USD 109k equivalent in rewards, in a combination of USDC, USDT, RLC, XZC, USDT-TRON, ALGO, and USDT ASA (Algorand Standard Asset). We continue to expand the capabilities of Hummingbot Miner to allow us to payout rewards in an issuer’s own native tokens on their own blockchain. The recently launched NEM campaign will be paying out XEM rewards on the XEM blockchain.
We saw 20% growth in the number of distinct miners in October.
Total Value Locked
Average Amount of Liquidity (Open Order Volume) per Bot
Currently approx. $667 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 11%, across eligible pairs and as high as 35% for MFT campaigns. Hummingbot Miners are accounting for approximately 12% of filled order volume for the recently launched Algorand campaign.
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.
A total reward pool of equivalent USD 108,694 yielded $143.1 million of traded volume across campaigns¹
On average, a weekly reward pool of equivalent USD 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:
For exchanges and projects who would like to learn more about liquidity mining, please contact us at firstname.lastname@example.org.