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Launch Hummingbot Miner

Uniswap v3 Liquidity Pool Strategy

Iteration 1 Uniswap v3 Strategy


Updated as of v0.40

Before you can use the Uniswap v3 LP Strategy in Hummingbot, you need to install and configure the Gateway API server.

The flowchart below is a guide on how to set up the installation and configuration of the strategy.

Uniswap v3 LP Strategy

Setup Ethereum wallet and nodes

Ensure you have setup the Ethereum wallet and nodes, for more details:

Setup Gateway

You need to setup the Gateway to use this strategy.

Uniswap v3 LP Strategy Iteration 1 Behaviour

The bot will create two liquidity positions:

Buy-Side

  • The upper price bound of this position is as close as possible to the current market price
  • The lower price bound of this position is set by the spread defined by the user (A)
  • The amount of tokens locked on this position is the amount defined on the quote amount question (D)

Sell-Side

  • The lower price bound of this position is as close as possible to the current market price
  • The upper price bound of this position is set by the spread defined by the user (B)
  • The amount of tokens locked on this position is the amount defined on the base amount question (C)

Uniswap v3 Strategy

The following example shows a step-by-step on configuring the strategy.

  1. In Hummingbot, enter create.

  2. Enter uniswap_v3_lp.

    What is your market making strategy?
    >>> uniswap_v3_lp


  3. Enter the pair you would like to provide liquidity to (e.g. WETH-DAI)
    >>> WETH-DAI


  4. On which fee tier do you want to provide liquidity on? (LOW/MEDIUM/HIGH)
    >>> Medium


  5. How wide apart(in percentage) do you want the lower price to be from the upper price for buy position? (Enter 1 to indicate 1%)
    >>>


  6. How wide apart(in percentage) do you want the lower price to be from the upper price for sell position? (Enter 1 to indicate 1%)
    >>>


  7. How much of your base token do you want to use?
    >>>


  8. How much of your quote token do you want to use?
    >>>


NOTE:
Paper_trade is not applicable for this strategy. Alternatively, you may set up a kovan_testnet to help you run some tests without risking funds.
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