Undeniably, Liquidity mining has become one of the favorite passive income options for crypto traders by offering remunerative rewards and yields. Liquidity mining is a process in which crypto holders lend assets to liquidity pools in order to reap rewards. Crypto trading or market making bots upgrade and boost the entire process.
A 12-week liquidity mining campaign for XDC was initiated by Hummingbot, an open-source DeFi market-making software platform based in California, on well-known cryptocurrency exchanges – KuCoin and Gate.io. A total reward pool worth 36,000 USD is tagged for this Hummingbot-XDC liquidity mining campaign.
We're thrilled to welcome $XDC @XinFin_Official with a 🆕 12-week liquidity mining campaign on @gate_io & @kucoincom!
Join in on November 29, 2022 for your share of the ~US$36,000 total reward pool! 🔥 🚀Learn more 👉https://t.co/h3sxWh214k. pic.twitter.com/GnnzgndE9n
— hummingbot (@_hummingbot) November 28, 2022
A decentralized, community-based market making system by Hummingbot enables anyone to take part in the liquidity mining process. Users not only have the opportunity to receive token rewards but also support the token and the project through liquidity mining based on their trading activity.
Setting up an automated bot using the Hummingbot software is seemingly a cakewalk. Let’s have a look at the steps involved in the process.
- Firstly, the step of installing the Hummingbot software. On installing the DeFi software, the algorithmic crypto trading program can be initiated. Users can install the setup as given in the official Hummingbot guide https://docs.hummingbot.org/installation/#source.
- To start the process, the significant command is “Start Pure Market Making”. Users have to connect the API keys that are linked to their KuCoin or Gate.io trading account to the software. (If they don’t have an existing trading account, creating a new one is also simple.)
Next, run the “connect exchange_name” command to integrate the API keys and passphrases. On completion, the “You are connected to KuCoin/Gate.io” message appears.
- Type the word “Create” after that. Once finished, the question “What is your marketing strategy?” will be posed to you. Simply enter “pure marketing approach.” Following it, the name of the maker exchange – Gate.io or KuCoin – has to be entered.
- Subsequently, users will specify the corresponding trading pair – XDC:USDT. Also, inputs such as order percentage (bid and ask order), time interval, and amount of XDC are entered.
- Once inputs are fed, the bot needs to be activated. To do that, users will have to initiate the “Start” command.
- On activation, the bot’s configuration is set. The team recommends users check the order book and the strategy set.
With these steps, Hummingbot’s automated XDC market making bot for the XDC:USDT pair is set up. XDC Network is able to promote decentralization and expand its network in the DeFi industry through this 12-week campaign hosted by Hummingbot.