This is part 1 of the Hummingbot quickstart guide:
In this guide, you'll learn how to set up a market making bot using Hummingbot that earns liquidity rewards on Hummingbot Miner, a liquidity mining platform that provides a decentralized, community-powered approach to market making across various exchanges.
First, you'll create API keys and add them to Hummingbot Miner. Next, you will install the open source Hummingbot algorithmic trading software and run the
liquidity_mining strategy in Hummingbot, which we recommend for new users. Finally, we'll show you how to collect your rewards and assess your bot's performance in the Miner app.
Let's get started!
Disclaimer Neither this nor any other Hummingbot documentation constitutes financial advice. Hummingbot does not guarantee rewards, but provides the general public access to the same market making and liquidity mining roles previously reserved for large hedge funds.
First, create an account at one of the following exchanges where we offer liquidity mining
Afterwards, go to the API management section of the exchange website. Here's where it resides in KuCoin:
Then, find the Create API command to create two API keys:
The first API key should have
Enable Reading checked in setup. This will be used to create the snapshots that hummingbot miner will read to calculate rewards. In the next section, you will add this key to the Hummingbot Miner app, which allows it to verify your bot’s activity and allocate your rewards.
Additional verification steps may be needed, including two-factor authentication (2FA) or verification by SMS/email.
In KuCoin, you can create a read-only API by only checking the General option and leaving Trade unchecked:
The second key should be trade enabled. Later, you will use this API key with the Hummingbot client to allow it to place and fill orders on a connected exchange.
For each API key, make sure to save the API key, secret key, and passphrase (if required), since the exchange only shows them to you upon creation. You will need the public and secret keys for both APIs in the following steps!
Afterwards, you should have two keys, a read-only key and a trade-enabled key: