In a significant milestone for Polkadex and a first for the wider Polkadot ecosystem, Polkadex Orderbook has integrated Hummingbot, the leading open-source platform for creating, deploying, and managing automated trading bots.
The integration of the dedicated Hummingbot Polkadex connector is set to empower Polkadex Orderbook traders with the ability to craft cutting-edge trading strategies and engage in seamless cross-exchange trading.
What is Hummingbot?
As the open-source operating system for crypto algo traders and a leader in automated trading software, Hummingbot is the tool Polkadex traders can use to design, backtest, and deploy fleets of automated trading bots.
Hummingbot is linked to Polkadex Orderbook via an API connector, tapping into efficient and non-custodial, high-frequency trading. This integration democratizes access to advanced market making and arbitrage strategies, traditionally reserved for professional market makers.
What advantages does it bring to Polkadex traders?
Thanks to the integration with the Hummingbot connector, Polkadex users can now:
- Create and customize their own trading bots
- Delegate their trading to automated, pre-set trading strategies
- Craft their own automated trading strategies using Hummingbot’s open-source template libraries and script examples
- Conduct seamless trades across multiple exchanges
- Enjoy increased liquidity and trading efficiency
While the possibilities are near endless, Hummingbot integrations can help traders with market-making, arbitrage, directional strategies, and more.
Want to learn how you can run your Hummingbot trading bots to trade on Polkadex? Check out the following guide by Polkadex Executive Director and Co-Founder, Vivek Prasannan.
How to use Bots to Market Make on Polkadex
I’ve outlined a step-by-step method to deploy your Hummingbot for Market Making on Polkadex. Given that this platform…
Trading bots on Polkadex… and on Polkadot
This integration not only improves individual trading experiences, but is also intended to help bolster the overall liquidity and dynamism of the Polkadex ecosystem. While trading bots like Hummingbot’s are usually deployed on centralized exchanges (CEXes), Polkadex Orderbook’s architecture allows for trading bot integration: yet another significant step in narrowing the gap between decentralized and centralized exchange features.
With this integration, and in an industry led by CEXes and AMM DEXes, Polkadex joins the mere handful of central limit order book (CLOB) DEXes with Hummingbot connectors. Among connected CLOB DEXes, Polkadex is the only one with a custom-built, decentralized interoperability layer and the ability to scale to high frequency trading speeds.
While the integration of Hummingbot is a significant milestone for Polkadex and an important update for traders, it also marks a first for Polkadot. Traders across the Polkadot ecosystem no longer need to rely on centralized exchanges in order to run their own automated trading strategies. Thanks to Polkadex Orderbook’s integration with the Hummingbot connector, traders on Polkadot can finally trade as they do on a CEX, without ever giving up custody of their assets, not even when deploying their own trading bots.
With quarterly polls and HBOT token votes, the Hummingbot community decides which connectors should be included in the codebase for the next quarter, and whether they are maintained by Hummingbot Foundation. Gold tier is given to the top voted exchange, while silver is awarded to the three following exchanges. Out of 20 DEX connectors (15 AMMs and only 5 CLOBs), Polkadex received the 3rd most votes, granting it silver tier status. Thanks to its silver tier status, the Polkadex connector is currently maintained by Hummingbot Foundation via community developer bounties, tracking improvements made to the Gold connectors. This improves the connector’s quality and reliability, with ongoing enhancements supported by the Hummingbot Foundation.
New DeFi possibilities for the whole of Polkadot
While the integration of Hummingbot might not make a visible impact on the Polkadex Orderbook frontend, its impact will be felt as the platform grows in trading pairs and volume, thus attracting experienced traders with the trustlessness of a DEX and the automated trading functionality and tools available on existing CEXes. “This integration enhances trading on Polkadex Orderbook, and in doing so, provides new possibilities for the entire DeFi ecosystem on Polkadot,” concluded Polkadex CEO and Co-Founder Gautham J.
Remember, ASTR, DOT, iBTC, PDEX, PHA, and USDT are now trading on Polkadex Orderbook, which means you can start placing non-custodial limit and market orders on the 5 CEX-like spot markets. Or even better, forget about placing and managing orders altogether and start running your own non-custodial trading bots with Hummingbot!
One more thing: PolkaChats
Hummingbot Co-Founder Michael Feng will be joining Vivek and Polkadex Marketing Manager Pablo Solanas Martin for a Twitter Spaces PolkaChats session this Friday December 8th at 3:30pm UTC. Talk to you then!
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Polkadex is a fully non-custodial, peer-to-peer, orderbook-based cryptocurrency exchange for the DeFi ecosystem built on Substrate and designed to become the ultimate trading engine for Web3. Polkadex has developed Polkadex Orderbook, an easy-to-use platform that combines the benefits of centralized and decentralized exchanges into one cutting-edge, non-custodial solution that caters to all crypto traders. You can now trade ASTR, iBTC, DOT, PHALA, USDT, and PDEX, on Polkadex Orderbook.
Hummingbot’s mission is to make sophisticated trading strategies and technology accessible to everyone and to level the playing field for traders around the globe.