Liquidity mining: November recap

Blog»Liquidity mining: November recap
november-recap

Carlo P. Las Marias

2020-12-01 · 6 min read

November was a month filled with major milestones for the Hummingbot Miner platform:

  • The total number of unique users surpassed 1,000, reaching 1,019 at the end of the month

  • Largest ever monthly traded volume recorded: 62 million in November, bringing total traded volume over200 million to $204 million.

  • All-time highs for daily average open order volume ($192k, order book depth) and number of bots (314)

  • We saw a 20% growth in user base, with 66% growth in weekly active miners in the month

Helping to drive user growth and activity was the launch of 3 new liquidity campaigns for major crypto token NEM (currently ranked #19 on coinmarketcap), Kava’s newly issued HARD tokens for its Hard Protocol, and Stratis’ new token STRAX (issued in exchange for its previous STRAT token). All three new campaigns also highlighted the ability of Hummingbot Miner to support and provide liquidity for newly issued tokens.

NEM is in the process of rolling out its new Symbol blockchain and new XYM token, expected to launch in January 2021. The liquidity mining campaign for the current XEM tokens (and expected for the new XYM tokens) is intended to engage the NEM and Hummingbot communities to help provide liquidity for the tokens during this upcoming period of transition.

Meanwhile, liquidity mining campaigns for HARD and STRAX went live just days after the tokens were listed on Binance. Token listings represent one of the situations in a token’s life cycle where market making is needed most, to help with price discovery, promote efficient trading, and allow the market to trade in and access the new token.

The HARD campaign also had the largest weekly reward pool we’ve seen so far for a campaign, with $10,000 of rewards in the first week alone.

On the tech side, we also added native NEM, ALGO, and USDT ASA (Algorand Standard Asset) reward payments, making payments to users in those tokens on their own blockchains.

Looking ahead

The growing number of users and campaigns has been a good test to push the limits of our platform, with increased amounts of user-generated data and the need to process and handle higher volume of data more quickly. Our team has been working hard to continue to scale the platform, continuing to build out the foundation that will enable us to expand liquidity mining to more and more exchanges, platforms, and make it available to more issuers and address their needs.

The platform is already ready for campaigns on KuCoin, and we continue to monitor the latest developments with that exchange before launching a liquidity mining campaign there. Next on deck is an integration with Bitfinex, and we also continue to evaluate which exchanges to target integrations for Q1 2021. We welcome feedback from the community, and particularly from token issuers, on which exchanges they would like to see Hummingbot Miner integrate to. Please send any feedback to miner@hummingbot.io or message us to arrange a call to discuss.

Governance/voting

In November, we also completed our 2nd governance vote, and the first done through the Hummingbot Miner app.

governance

We had just over 50% of eligible votes cast participate in governance proposal #2. We thank everyone who participated, and it’s been great getting the community more involved and active in helping to shape our roadmap. Our next governance proposal is starting next week, on December 8, 2020 12.00am UTC.

Hummingbot Miner UX/UI

Our team is growing and we have just added a new Senior Front-End Engineer to our team! We will be rolling out a number of Hummingbot Miner app changes and initiatives to help improve user experience and make it easier to use. We encourage community members to reach out to our team at miner@hummingbot.io to provide any feedback or set up a call to discuss our platform.


9-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.

We have seen 1k unique miners participate in providing liquidity on Hummingbot Miner. From March 2020 to November 2020, order book depth created by liquidity miners generated $204 million of traded volume. Meanwhile, the rewards paid out to miners has totaled to only USD 149.4k equivalent, resulting in cost-effective market making for token issuers.

Through November 30, 2020

  • New milestones for the month: (1) got over 1k unique miners, (2) filled order volume surpassed 200mm, and (3) largest weekly filled order volume total20.6mm

    • Filled order volume surpassed 200mm in November, bringing the total overall miner traded volume to204 million.

    • Total distinct miners surpassed 1000! Currently, we have had 4,180 total sign-ups, with 1019 distinct miners having participated and earning rewards

    • Weekly filled order volume total of $20.6mm so far this is the highest weekly FOV we reached starting from March to November

  • USD equivalent 149.4k cumulative rewards paid out

  • The top ranked miner has earned equivalent USD 14,565 rewards in total and #2 miner has earned equivalent USD 10,897

Cumulative Rewards Paid Out to Date

Miners have earned USD 149.4k equivalent in rewards, in a combination of stable coins and issuer’s own tokens across a number of different blockchains. 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

cumulative-rewards-usd-value

Number of Distinct Miners

cumulative-number-of-distinct-miners

We saw 20% growth in the number of distinct miners in November.

weekly-distinct-miners

We saw 66% growth in the number of weekly active miners in November.

Total Number of Bots

total-bots-by-asset
cumulative-bots-by-asset
avg-bots-per-campaign

Open Order volume

Total value locked

open-order-volume-by-base-asset
stacked-open-order-volume-by-base-asset
avg-oov-per-campaign

Average Amount of Liquidity (Open Order Volume) per Bot

Currently approx. $905 of open order volume/liquidity has been created per bot. The amount of assets per bot has been on an upward trend and recovered since the market sell-off and volatility we saw in early September.

avg-usd-amount-per-bot

Filled Order Volume

cumulative-volume
filled-order-volume-by-base-asset
stacked-fov-by-base-asset

Filled Volume as % of Binance Tools

fov-pct-of-binance-volume-by-base-asset
overall-liquidity-mining-fov-pct-daily-binance-total

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

rewards-vs-fov
  • A total reward pool of equivalent USD 149,444 yielded $204 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 $ 3.9 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-rewards-vs-fov

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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