The egalitarian framework of blockchains has succeeded in ‘leveling the playing field’ to grant direct access to all who wish to participate and add value.
This has transformed no industry more than the financial, where crypto has taken over the high level functions, which were previously reserved for only the likes of elite institutions such as hedge funds.
One component in particular being market making, which has its roots in providing the essential elements for a market to perform. In crypto this manifests as exchanges providing the venue where traders can execute trades, with market makers providing the liquidity to ensure transactions are conducted efficiently.
Unfortunately within the current landscape many remnants still remain from traditional finance. Foremost being the average trader is usually cast aside in favor of the biggest players whose capital endowment and advanced tool-set leaves them with little room to compete.
This inequality also leaves a gaping hole in the marketplace in the form of fragmented liquidity, as it is provided by only a few (albeit high volume) sources. Meanwhile the intelligent automated trading tools utilized by the top professional market makers are noticeably missing when it comes to the general population.
A model of liquidity mining, though, is one which aims to balance the objectives of both buyers and sellers within the component of market making. For buyers it is to increase liquidity and ensure consistency and for sellers this is to earn payouts and maximize the spread of orders placed while market making.
With this model, liquidity is able to be generated in a more crowdsourced manner. The democratization of accessibility in intelligent trading tools has given rise to a more suitable market making approach for the crypto industry.
Leading the charge to date in the space is Hummingbot, who host an open source framework for terminal-based algorithmic crypto trading. Their liquidity mining marketplace and its subsequent successes were also one of the main inspirations in the creation of Autonio’s own liquidity mining protocol (NIOX Swarm).
Nevertheless, results yielded so far have shown to be encouraging. In the case of Hummingbot, they’ve achieved 3,200+ individual market makers with $2.4 billion in volume over 72+ token issuers and exchanges.
Autonio’s numbers have also been quite positive with a volume generated of $37,091,600 and $40,570 of rewards distributed in our Swarm campaigns to date.
This is why we at Autonio are excited to build on top of Hummingbots terminal and infrastructure, with the maker 2.0 set to offer a host of advanced features and a “pro” experience with a cloud based service, availability of AI agents and premium trading strategies to simplify utilization of such advanced trading toolset.
Furthermore the architecture of Maker 2.0 is being designed to incorporate many of Hummingbot’s most successful features, while we also intend to make it more accessible through a better UI that’s composed of cloud based service and AI integrations.
In addition to our own updates and changes Autonio will be partnering with the newly formed Hummingbot Foundation in order to provide a brand new web GUI in order for users to more easily use Hummingbot.
Meanwhile we will keep you updated on future developments.
Have fun trading and market making with Autonio!