Liquidity Mining: May recap

Liquidity Mining: May recap

Blog»Liquidity Mining: May recap

cover-lm-monthly-recap-may

Dennis Buyco

2021-06-07 · 6 min read

announcement

The month of May was, obviously, an extremely volatile month for the cryptocurrency market:

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The downward move in markets did result in the number of active bots as well as open order volume dipping for some parts of the month, however, miner activity bounced back relatively quickly. The resilience of our community to weather and navigate such adverse market conditions continues to reinforce the power and potential of decentralized market making.  Even during the most volatile markets, much of our community continued to make markets and support trading for our various campaigns.  

In the month, total filled order volume on Hummingbot Miner grew almost 24%, reaching a total cumulative value of $1.8bn! We also saw the largest daily traded volume by Hummingbot Miners with $33.8m traded on May 10, 2021 alone.

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  • Filled order volume reached $1.8bn, a monthly increase of 24%

  • Total distinct miners surpassed 2,500! Another 300 new miners signed up and earned rewards in the month of May

  • $752.8k equivalent cumulative rewards paid out since March 2020, with over $100k paid during May alone.

  • The top ranked miner has earned the USD equivalent of $133.0k in total rewards

New campaigns and extensions

  • Avalanche has extended its liquidity mining campaign on Binance for another 3 months.

  • The ShareToken (SHR) liquidity mining campaign kicked off on May 25, with a total reward pool of $15,000 in SHR (44,642 SHR/week).

  • Divi announced a liquidity mining campaign on May 31 for its new listing on KuCoin.  The campaign kicked off on June 1 with a total reward pool of 30,000 USDT for 12 weeks (2,500 USDT/week) and is the latest example of Hummingbot Miner being used to support the liquidity of new token listings!

New features and enhancements

Third liquidity mining exchange is coming soon!

We are launching the third liquidity mining exchange imminently!  This third exchange is an important strategic partner who is making Hummingbot Miner an important offering for its token issuers.  We expect to be announcing many more liquidity mining campaigns for many new issuers in the coming weeks!  Stay tuned, as we are planning to announce this new exchange in the next few days...

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New rewards dashboard

We recently rolled out a new rewards dashboard that allows users to filter rewards by market, making it easier for miners to better analyze their rewards across different markets.  We are also adding the rank and trend stats (the same from the leaderboard) to the view, to allow users to more easily see their standings versus all miners for all of their active markets, in this single screen.  These stats will be rolled out in June.

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User support for $600 reward

For users whose rewards exceed $600, we are required to collect forms for tax compliance purposes. We recently added a notice for this on the miner app as well as a section in Settings to allow users to submit this form. Since rolling out this feature, we’ve already had over 50 users complete this requirement, in a much more stream-lined process.

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We are constantly looking to improve our users' experience. Currently, we are working on redesigning the miner app, with exciting new features such as order book depth, price and spread charts and a dark mode. We welcome any feedback and suggestions at miner@hummingbot.io or you can join the team in lively discussions on our discord server.

Platform statistics

Through May 31, 2021

Rewards

Since launch, we have paid out approximately $672.9k in rewards on Binance.

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We launched campaigns on KuCoin in February, and since then we have paid out over $80.9k in rewards to minerson KuCoin.

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Number of distinct miners and bots

As of June 1, in total 2,520 distinct miners have participated in Hummingbot liquidity mining.  There have been 2,289 unique miners on Binance and 461 distinct miners on KuCoin.

Overall distinct miners for all exchanges

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Distinct miners for Binance

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Distinct miners for KuCoin

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The number of active bots fluctuated in the month, as previously mentioned, due to extreme market volatility.  But even during the worst of markets, several hundred bots remained active and active bots recovered quickly amid the volatility:

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Liquidity (open order volume)

Outstanding liquidity peaked at $965.6m on May 3.  Similar to active bots, open order volume fluctuated during the month, but generally recovered quickly.  Open order volume did end the month lower, due to completed campaigns as well as overall levels of cryptocurrency market prices ending the month significantly lower.

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The average outstanding open order volume per campaign climbed to $87.8k on May 3, also topping April's previous peak.

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Filled order volumes on Binance

Traded volume by miners on Binance continued its trajectory, reaching $1.7bn equivalent in May, a monthly increase of more than 20%.

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Binance reached the highest daily FOV yet amounting to $33.8m on May 10, 2021.

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XEM and MFT still continue to lead the board, with cumulative miner-traded volumes of $365m and $358m respectively.

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Hummingbot miners comprised impressive percentages of Binance filled order volume totals for the campaign tokens, with more than 40% of liquidity provided by our community for some assets, like CDT.

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Filled order volumes on KuCoin

The contribution of Humminbot miner's community to KuCoin's liquidity continues to grow, with cumulative FOV reaching $103.6m in the month of May.

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Our community accounted for over 15% of KuCoin's total Filled Order Volume for active campaigns, reaching as much as 25% on some days of the month.

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In line with what we saw for Binance, our miners provided an impressive level of liquidity for some campaign tokens on KuCoin such as FRONT, reaching more than 85% of FOV on some days.

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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 efficiency and, consequently, additional trading volume. Trading volume is important for issuers since exchanges typically use traded volume as a benchmark to decide whether or not to maintain or remove token listings. Binance Rewards vs. Filled Order Volumes

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Binance - Filled order volume per USD 1,250 weekly reward

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KuCoin Rewards vs. Filled Order Volumes

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KuCoin - Filled order volume per USD 1250 weekly reward

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Note: 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.

Top ten miners

The top ten miners, as of May 31, have been awarded a total of $389k equivalent in payouts.

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Thank you!

The growth of the total number of bots across a diverse spectrum of base assets shows the health of the Hummingbot ecosystem, thanks to its increasing and energetic base of dedicated users and developers.


🏛 Token issuers: contact the team at partnerships@hummingbot.io to learn more about running liquidity mining campaigns on Kucoin, Binance.com, or to suggest the next exchange for us to integrate with!

🏦 Exchanges: contact partnerships@hummingbot.io if you’d like to bring Hummingbot and liquidity mining to your exchange!

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