2021-10-11 · 3 min read
After two months of hard work by the Hummingbot community, we are happy to announce the conclusion of the first dYdX Bounty that started in August.
We and dYdX are awarding two types of bounties:
New Strategy Bounty: $10,000 up for grabs for the creation of a new Hummingbot Client strategy making use of the dYdX Perpetual connector.
Content Bounty: $2,000 on the line for the best content creation related to the use of Hummingbot and dYdX.
And now it’s time to know the contestants and their submissions, with the winners being revealed at the end of this article!
Github Link: https://github.com/CoinAlpha/hummingbot/pull/4121
Description: “This strategy looks at the balance of the position on the spot(maker) exchange, and hedges it on the perpetual(taker) exchange.”
Hummingbot & dYdX teams evaluation:
The possibility to hedge his positions is a very useful asset to have on the market maker risk management toolbox.
The strategy submitted by leastchaos aims to fill that role by automatically opening short positions on dYdX to match the inventory value allocated on the spot market you are trading.
It does have some very interesting configs like `hedge_ratio`, where you can set what is the proportional amount of the hedge. You can, for example, set it’s value to `0.5` and the bot will only match half of the existing inventory on the spot exchange.
We can also see the usefulness of this strategy even if you aren’t market-making: Not sure about the market direction, but don’t want to sell you spot positions yet? Run this strategy until you are comfortable to make the decision.
In the next week, we will create more content that shows users how to use this strategy.
We received two submissions on this category, with pretty useful guides on how to setup your Hummingbot client to connect and start trading with dYdX Perpetuals.
The second content submission comes from @cryptoulette, who also submitted a written guide and a video explaining step by step “HOW TO BECOME A CRYPTO MARKET MAKER IN LESS THAN 30 MINUTES - on dYdX using hummingbot”.
As a bonus, he added a twitter thread with the respective steps.
We appreciate the time and effort that other members of the Hummingbot communities spent on their submissions. As mentioned in the original announcement, some tips will be allocated to reward their efforts.
Thank you all, and see you on the next Bounty!