Introducing the new Perpetual Protocol connector and the perpetual-to-spot arb strategy

Blog»Introducing the new Perpetual Protocol connector and the perpetual-to-spot arb strategy
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Yingdan Liang

2021-03-04 · 2 min read

We're thrilled to announce a new partnership with Perpetual Protocol, an Ethereum-based decentralized exchange of perpetual contracts for any asset. With this partnership, Hummingbot users will be able to earn arbitrage profits from reconciling price differences between Perpetual markets and spot markets.

The Perp connector is included with the v0.37.0 release of Hummingbot that will be shipped on March 8, 2021, along with a new perpetual-to-spot arbitrage strategy.

Since we launched the perpetual market making strategy, a new strategy to exploit arbitrage profits between perpetual and spot markets has been highly requested by our community. This new strategy allows users to arbitrage price differences between the perpetual contracts exchanges, such as perp.exchange powered by Perpetual Protocol and Binance Futures, and other Hummingbot supported spot exchanges such as Binance, Coinbase Pro, and Huobi.

The price differences of countless pairs create numerous arbitrage opportunities that can bring small profits for individual traders or smaller trading firms like most Hummingbot users. A bonus point: these opportunities can be fun and rewarding to catch! Let Hummingbot do the hard work for you (You could constantly refresh your browser and manually catch these opportunities but that requires a lot of effort). This new strategy will automatically check for arbitrage opportunities and execute trades, saving you time and energy.

About Perpetual Protocol

Perpetual Protocol is a DeFi app that lets you go long or short on your favorite tokens with up to 10x leverage. The protocol also plans to add stocks, commodities and all kinds of assets in the future. Perpetual Protocol is based on Ethereum, and seamlessly leverages the xDai sidechain to provide a gas-free, rapid-finality trading experience. For more information, please visit https://perp.fi/.

Upcoming tutorials and events

Wanted to learn more about how to run the perpetual to spot arb strategy? Stay tuned for the following learning materials:

  • March 5, 2021, 5:00 pm (PST): The perpetual to spot arb strategy live demo on YouTube

  • March 12, 2021, 5:00 pm (PST): Live AMA with Perpetual Protocol on YouTube

  • The perpetual to spot arbitrage guide (available soon on Hummingbot Blog)

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