Developers Forum for XinFin XDC Network

Cover image for “XDC Liquidity Mining” Hummingbot — A DeFi Trading Bot Leading the XDC Liquidity Mining To Boost Organic Market Making.
Vinn
Vinn

Posted on

“XDC Liquidity Mining” Hummingbot — A DeFi Trading Bot Leading the XDC Liquidity Mining To Boost Organic Market Making.

12-Week Liquidity Mining Campaign with a total reward pool of 36,000 USD

Hummingbot, a California-based open-source DeFi market-making software platform, launched a 12-week liquidity mining campaign for XDC on prominent crypto exchanges — Gate.io and KuCoin. This XDC-based campaign started around 12.00 UTC on Tuesday. Significantly, this is a crucial move on behalf of the XDC Network to unify large communities to provide liquidity.

The Hummingbot-XDC liquidity mining campaign includes a total reward pool of 36,000 USD. As stated by Hummingbot, through this campaign, 30,941 XDC is available as a reward to users every week on a token pair. An extra bounty of 5000 Hummingbot tokens (HBOT) is rewarded as additional rewards. The two token pairs — XDC/USDT and XDC/ETH, are supported as the eligible entries of this XDC-based campaign. Users can participate in this campaign by setting up an automatic XDC trading bot with KuCoin or Gate.io trading account.

Intro To Hummingbot

Hummingbot is the leading open-source crypto trading bot with connectors to 30+ exchanges and a 16k-strong global community of developers and traders.

Hummingbot’s main value proposition is enabling users to run high-frequency trading bots on various cryptocurrency exchanges without having to build and maintain low-level API integrations. Connectors maintain persistent WebSocket or REST API connections to exchanges, allowing users to run automated trading strategies (or bots) that execute quickly, performant, and efficiently.

While Hummingbot is a general toolbox that can be used to build any trading bot, we focus on market-making and arbitrage bots because using those strategies benefits our exchange and protocol partners.

Why use Hummingbot?

  • Open source and free — Hummingbot is a local software client that never exposes your keys externally. The entire codebase is publicly auditable on Github.
  • CEX and DEX connectors — We support most major centralized and decentralized exchanges, allowing you to hedge and arbitrage between them seamlessly
  • Advanced market-making strategies — With sophisticated strategies like Avellaneda, Hummingbot is the only trading bot designed for professional market makers and liquidity providers.

Let’s start with easy to setup HummingBot XDC Liquidity mining steps.

First, you need a Kucoin or Gate Exchange trading account to set up an Automatic market-making bot, if you don’t have an account, please create a trading Account at Kucoin or Gate.

Refer below guide article to create and access your API key.

How to Create an API on Kucoin exchange.

How to generate a read-only API key for Gate.io

Once you have created/accessed your API key, Keep it in another safe place.

Now, let’s Download and Install the HummingBot on Windows.

The Hummingbot codebase is designed and optimized for UNIX-based systems such as macOS and Linux. For Windows users, we recommend running Hummingbot in Windows Subsystem for Linux (WSL).

WSL lets developers run a Linux environment directly on Windows, unmodified, without the overhead of a traditional virtual machine or dual boot setup. With WSL, Windows 10/11 users are able to run a Linux Virtual Machine without performance loss and the need for dual boot. See here for more detail about WSL.

Install WSL

  1. Open Powershell as admin

Search for “Powershell” on the start menu, right-click and “run as administrator”

  1. Run the Install WSL command “wsl — install” By default, WSL uses the Ubuntu distribution of Linux, which is compatible with Hummingbot.
    Image description

  2. Start WSL

After the installation, type wsl on the Powershell or the Command prompt.

Note that the first time WSL is executed, you will be asked to create a new default username/password.

  1. Install Ubuntu from Windows Store

Alternatively, after WSL is installed, search for Ubuntu in the Windows Store and install it as an app in the Start menu. That way, you don’t have to run Powershell every time you use Hummingbot.
Image description

While installing, it will restart your system, so don’t worry about it. Once installed successfully, it will ask to set the username and password.

Once set the username and password, the screen will look like this.
Image description

Now, Install Docker in WSL

  1. Install Docker

With WSL, you now have a Linux Virtual Machine under Windows.

Linux on Windows

Follow the instructions below to complete the Docker installation process.

Remove older / currently installed versions of Docker first.

sudo apt-get remove docker docker-engine docker.io containerd runc
Enter fullscreen mode Exit fullscreen mode
  1. Update the package index
sudo apt-get update && sudo apt-get upgrade -y
Enter fullscreen mode Exit fullscreen mode
  1. Install necessary packages
sudo apt-get install apt-transport-https ca-certificates curl software-properties-common gnupg lsb-release
Enter fullscreen mode Exit fullscreen mode
  1. Add Docker’s official GPG key
curl -fsSL https://download.docker.com/linux/ubuntu/gpg | sudo apt-key add -
Enter fullscreen mode Exit fullscreen mode
  1. Setup the repository
sudo add-apt-repository “deb [arch=amd64] https://download.docker.com/linux/ubuntu $(lsb_release -cs) stable”
Enter fullscreen mode Exit fullscreen mode
  1. Install Docker
sudo apt update && sudo apt-get install docker-ce
Enter fullscreen mode Exit fullscreen mode
  1. Start the Docker service.
sudo service docker start
Enter fullscreen mode Exit fullscreen mode
  1. Allow docker commands without requiring sudo prefix. If you are running as root, replace $USER with your username
sudo usermod -aG docker $demo
Enter fullscreen mode Exit fullscreen mode
  1. Restart the terminal first before running the create.sh script (Important!)
exit
Enter fullscreen mode Exit fullscreen mode

Warning: Please restart the terminal — close and restart your terminal window to enable the correct permissions for the docker command before proceeding to the next step.

Install Hummingbot

Download Hummingbot, install, start, and update the script.

wget https://raw.githubusercontent.com/hummingbot/hummingbot/master/installation/docker-commands/create.sh

wget https://raw.githubusercontent.com/hummingbot/hummingbot/master/installation/docker-commands/start.sh

wget https://raw.githubusercontent.com/hummingbot/hummingbot/master/installation/docker-commands/update.sh
Enter fullscreen mode Exit fullscreen mode
  1. Enable script permissions
chmod a+x *.sh
Enter fullscreen mode Exit fullscreen mode
  1. Create a HummingBot instance
./create.sh
Enter fullscreen mode Exit fullscreen mode

Once successfully connected to the Hummingbot, you will be redirected to the **“Welcome to Hummingbot” **screen.
Image description

You will be prompted to the “Important Warning” screen; Please read it carefully before using HummingBot.
Image description

Image description

Now, you need to set the password for the “HummingBot”.
Image description

Image description

Once you have set the password, you need to do “Config Migration”.
Image description

Image description

Now, you can see that you have partially done the process to connect the Exchange (KuCoin / Gate exchange)
Image description

Let’s Start Pure Market Making a bot.

  1. Enter the command “connect exchange_name”
    Image description

  2. Now, Enter your API Key, Secret Key, and Passphrase of KuCoin or Gate Exchange

Enter the API key and Secret Key you generated from the AUTHENTICATION process. As you type your API key, it will display in this format: ***

Refer below guide article to create and access your API key.

How to Create an API on Kucoin exchange.

How to generate a read-only API key for Gate.io

Once you have entered the details correctly, you will be connected to the Exchange.
Image decsription

  1. Now, create a Bot and start with the strategy.

Enter the create command, after entering the create a command, you will be asked for a market strategy.

  1. Enter pure_market_strategy

  2. Enter your market spot connector, i.e., exchange name. Enter kucoin or Gate.
    Image decsription

  3. Now, you need to add a trading pair. Enter XDC-USDT

  4. Enter the mid-price do you want to place the first bid order (0.2)

  5. Enter the mid-price do you want to place the first ask order (0.2)

*Small percentage means more trade, but make sure you are in profit after deducting Trading fees.

  1. Enter the Time interval in seconds. Ideally, you can set up between 0 to 60 Seconds.
    Image decsription

  2. Enter the amount of XDC per order. (Here, I have entered 500)

  3. After entering the amount, It will ask for a ping-pong feature. Select No

  4. Enter a new file name for your configuration(Auto suggested — conf_pure_mm_1.yml).
    Image decsription

  5. Lastly, Enter the start command to start market making.

Once you set up the Bot, you have to watch the order book a regular intervals. You can try different strategies and optimize profit.
Image decsription

This is how I have run the HummingBot with a KuCoin exchange. Please do share your experience or feedback on running HummingBot at XDCDev.

Discussion (0)