Liquid is Now Fully Integrated with Hummingbot

We are pleased to announce our partnership with Hummingbot and the integration of Liquid with the Hummingbot platform. 

What is Hummingbot?

Hummingbot is an open-source software client that facilitates the construction and operation of high-frequency crypto trading bots, available for anyone to use on multiple cryptocurrency exchanges. It can turn a simple trader into an advanced algorithmic trader or a profitable market marker.

The Silicon Valley-based team behind Hummingbot is comprised of former investment bankers (Goldman Sach, JP Morgan) and tech veterans (Apple, Samsung), backed by Bain Capital Ventures and Stanford University’s StartX Fund.

Hummingbot and Liquid

Hummingbot has completed exchange integration of Liquid, so Liquid customers can now use Hummingbot to deploy automated trading strategies on our exchange.

Together we share a core mission to bring liquidity to the crypto economy using advanced technology. As a unit, Liquid and Hummingbot are bringing this space a step closer towards democratizing finance and providing deep liquidity for crypto traders.

Hummingbot is a powerful application - let’s take a look at what it can do for you, starting today.

What can Hummingbot do?

Hummingbot is easy to set up and use, making your step into automated trading a breeze. You now have access to tools that can diversify your trading strategy.

With Hummingbot there are three different types of bot you can build, all of which present opportunities to profit:

Arbitrage

A crypto trading bot that looks for chances to buy an asset for a low price on one exchange and sell for higher on another. Bots have more eyes and faster reflexes than you - they’ll jump on an opportunity faster than you can blink.

Market Making

Operate a bot that provides liquidity to order books by maintaining buy and sell orders.

In essence, Hummingbot allows community members to market make at small quantities, which in turn benefits both the small market makers and the users of Liquid with decentralized liquidity provisioning.

Mirroring

This is a mix of arbitrage and market making. The bot clones liquidity from one exchange to another.

Why use Hummingbot?

Hummingbot has been built for the best - specifically to meet the needs of leading quantitative crypto hedge funds. It’s a highly capable piece of kit, but it’s straightforward and easy to use.

Not only is it easy, but Hummingbot is open source and free to use. This means two things:

1. The codebase is publicly auditable so you can verify there is no malicious code to steal your funds or put you at risk.
2. You can leverage the power of Hummingbot for free, forever.

Security

As with everything in crypto, security is the name of the game. If you’re not safe, money is at risk. That’s why we got Liquid’s CISO to conduct due diligence on Hummingbot ahead of our partnership - finding that Hummingbot doesn’t introduce any additional risk to our environment or customers.

This is due to Hummingbot’s local software client architecture, alongside the previously mentioned open source codebase. Users have full control over what data they send externally, and Hummingbot never have access to any user's private keys and API keys.

If you're interested, here is everything you need to know to get started.