Liquidity Mining Strategy (BETA)
Learn how to use Liquidity mining strategy
The liquidity mining strategy allows users to run market making bots on markets that are yielding liquidity mining rewards. This strategy offers diversification by running a market making strategy across different campaigns. It also provides better capital allocation by sizing orders based on target based allocation.
This strategy also provides easy setup and maintenance. Another key unique feature is dynamic spread adjustment on market volatility.
This strategy has parameters like
avg_volatility_spread that automatically adjust the spreads based on a market’s volatility based on the historical mid-price.
You will need to hold a sufficient inventory of quote and base currencies to place orders of the exchange's minimum order size.
When placing orders, if the order's size determined by the order price and quantity is below the exchange's minimum order size, orders will not be created.
The following walks through all the steps when running
The exchange where the bot will create and place orders.
Token trading pair symbols you would like to trade on the exchange.
Choose between the base and quote asset wherein you want to provide liquidity.
The order amount for the limit bid and ask orders. Ensure you have enough balance on base and quote tokens to place the bid and ask orders.
The strategy will place the order on a certain % away from the current mid-price. Spreads are automatically adjusted based on the
It sets a target of base asset balance in relation to a total asset allocation value (in percentage value). The bot will then try to achieve this target by utilizing the
Value in seconds of the orders’ duration before canceling and creating new sets of orders depending on the current mid-price and spreads at the interval. The default value for the parameter is 10s.
Determines the tolerance threshold in percentage of the order price before replacing the orders. This is to prevent replacing the orders too often. The parameter has a default value of 0.02%.
This parameter expands the range of tolerable inventory levels on your target base percent as a multiple of your total order size. Larger values expand this range. The predefined value is 1.
The interval, in seconds, in which to pick historical data from mid-price to calculate market volatility. The predefined value is 300s.
The number of intervals based on
volatility_interval to calculate the average market volatility. The predefined value is 10.
This expands the average spread depending on the value set. The predefined value is 1.