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Hummingbot and Solana Team Up To Launch A Liquidity Mining Campaign

We are excited to share that we have been working with the Hummingbot team in preparation for the launch of a liquidity mining campaign. Through this campaign, our communities will be able to participate in contributing liquidity for the SOL tokens and earn token rewards.

In this blog, we will introduce the joint campaign to our community beginning May 19th, 2020, at 12:00 am UTC, offering a total reward of $7500 USDC over 12 weeks. The eligible token pairs will be SOL/BTC, SOL/BUSD, and SOL/BNB. Campaigns will run on a weekly basis (Monday to Monday) with payouts happening three days after each campaign ends.

Click Here to Register

You can learn more about this campaign on Hummingbot’s website, and, get direct customer support from a Hummingbot representative on our Telegram channel.

Traditionally, institutions or projects engage market makers to maintain liquidity for a particular asset. The market maker simultaneously creates buy and sell orders for an asset in a market, thereby acting as a liquidity provider and facilitating other market participants to trade by giving them the ability to fill the market maker’s orders. However, the role of a market maker has generally had a relatively high barrier to entry, limited to quantitative hedge funds, trading desks, or large financial institutions.

One of the major challenges within crypto markets today is liquidity fragmentation. This is a problem that the team at Hummingbot have dedicated themselves to solving because, despite the incredible level of innovation brought forward by the digital assets industry, market-making has generally remained stagnant. This leads to issues, such as:

  • Adverse Selection: When certain market participants utilize asymmetric information to selectively transact in a market to benefit at the expense of other participants
  • Monopolization Risk: Given the high coordination costs of negotiating and maintaining bilateral contracts, most exchanges and issuers only engage with a few market makers, increasing their dependence on them for liquidity
  • Verification Difficulty: For non-exchange market participants, such as token issuers compensating market makers for their services, it is extremely difficult to verify compliance with non-manipulative trading practices

To tackle these challenges, the team at Hummingbot have launched the Liquidity Mining platform, a community-based, data-driven approach to market-making, in which a token issuer or exchange can reward a pool of miners to provide liquidity for a specified token. They believe that a marketplace-based approach can promote consistent liquidity provision, mitigate the risk of manipulative practices, and improve matching efficiency in the market for liquidity.

Our team at Solana share their passion and vision for more efficient markets, particularly one that properly aligns incentives against common market manipulation tactics, such as wash trading, spoofing, and price manipulation. Hummingbot’s Liquidity Mining has already proven extremely successful to date, and we’re excited that they’ve prioritized their next integration with Solana to continue disrupting this sector.

Upon launch, this will allow our community to be able to leverage the Liquidity Mining platform to act as market makers for the SOL token. Hummingbot’s turnkey trading bots will allow users to run various strategies and be compensated in doing so. We also believe this will have a positive impact on the liquidity of the SOL asset and reduce slippage between buyers and sellers.

About Hummingbot

Hummingbot is a VC-backed, Silicon Valley company that specializes in data engineering and machine learning for financial applications. It has created the eponymous Hummingbot software client, which is an open-source high-frequency trading bot for cryptocurrencies. While the bot has been engineered for institutional-grade trading capabilities and reliability, it has also been designed for ease of use in order to allow even novice traders and non-technical users access to algorithmic trading and market-making.

The Hummingbot team also created Liquidity Mining, a decentralized, crowd-sourced alternative for market-making that aims to tackle the problem of liquidity in the crypto markets. Liquidity mining uses a data-driven approach to create a fair model for rewarding market makers — one that aligns rewards with contributions to a token’s trading efficiency that result in deeper, consistent order books with tighter spreads. This provides a cost-effective and sustainable way for token issuers and exchanges to support liquidity for their tokens, as well as a way to engage and reward their communities for contributing to token liquidity. [Hummingbot to add further details here]

Learn more about the Liquidity Mining Campaign

[Hummingbot Miners](https://miners.hummingbot.io)

[Liquidity mining campaign terms](https://docs.hummingbot.io/liquidity-mining/#active-programs)

[Liquidity mining FAQs](https://docs.hummingbot.io/faq/liquidity-mining/)

[Leaderboard] https://miners.hummingbot.io/leaderboard

[Register] https://miners.hummingbot.io/

Customer Support [https://t.me/solanaio]

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Solana Will Reduce Its Token Supply to Account for Market Making Allocation

This Statement is subject to change based on new developments. Please check back here for the latest information.

Over the course of the day, there was some confusion about how a single account could have a balance of 13+ million SOL. The confusion stemmed from the fact that Solana’s stated initial circulating supply would be equal to the amount of tokens distributed through its CoinList auction in late March, plus a small amount distributed as part of a series of airdrop campaigns on Binance, which was around 8m tokens. Some members of our community did great work building tools to view token balances, and found an account totalling ◎13,527,651 tokens.

The end result: we made an announcement at 6:25pm PST about this. The tl;dr is that per standard industry practice, the Solana Foundation contracted a market maker to provide liquidity in the aftermarket and ensure that buy and sell orders always get met, regardless of macro conditions, seasonality, or daily fluctuations in trading volume. Market makers are standard for any listed token project, as well as in traditional financial markets for meeting liquidity requirements, and play an important role in our goal to reduce friction, facilitating growth for the SOL token ecosystem, and bringing Solana to every wallet in the world. As part of this agreement, the Solana Foundation agreed to lend the market maker ◎11,365,067 tokens for a 6 month period. The problem: we did not disclose this information to the public, as well as the size and nature of the loan, during the CoinList auction and subsequent Binance listing.

We apologize deeply for any confusion this may have caused. It pains us greatly to see the discord and distraction this oversight has caused to our community of over 150,000 members globally. The Solana community has held strong through 2 years of painstaking development to get to this point, so transparency and respect for that community is our highest priority.

To make things right, we’re taking two steps toward ensuring full transparency into past and future token releases.

First off, we’re setting the record straight on what happened.

The following represent ALL of the unlocked tokens not in the direct control of Solana Labs or the Solana Foundation:

◎8,261,584 have been distributed through the CoinList auction and the Binance airdrops

  • ◎8,000,000 were initially distributed through the CoinList auction
  • ◎19,721 were distributed to CoinList auction participants whose bids were dropped due to a glitch in the CoinList dutch auction clearing mechanism
  • ◎236,363 were distributed as part of the initial Binance airdrop campaign
  • ◎5,464 were distributed as part of AMA campaigns in Binance’s international communities.

◎11,365,067 are on loan (from the Foundation) to a market making firm for liquidity provisioning.

  • Market makers provide liquidity by quoting bid/ask spreads in pairs such as SOL/BTC, SOL/BUSD, and SOL/BNB (and future pairs on other exchanges); this ensures that there is always a price at which market participants can buy and sell tokens at any time in both small and large sizes
  • Market makers are non-directional and make markets more efficient by reducing price volatility, assisting with fair price discovery, and preventing market manipulation
  • Nothing has changed since the CoinList auction and Binance listing.

Besides the above, the Foundation has not released or sold any additional tokens into the market. The above tokens are NOT from the Solana team, or from Solana investors.

  • The team’s and investors’ tokens are all 100% locked up.
  • Neither the Solana team nor Solana Foundation profit from the sale of these tokens.
  • As of April 27, the Foundation does not have any plans to introduce more tokens to the market. Any plans to do so will be disclosed publicly beforehand.
  • There will not be any additional tokens allocated for liquidity provisioning without public disclosure.

Given recent feedback, we will always include the loan for market making when discussing circulating supply. These tokens are unlocked and not under Foundation control while on loan to the market maker, but it is important to note that no employee or officer of Solana Labs or the Solana Foundation have or will profit from the sale of these tokens.

Second, we’re reducing the supply in circulation.

After speaking with Binance and our market maker, we plan to reduce the circulating supply by removing the ◎11,365,067 supply from the market within the next 30 days. After removing the supply, we aim to burn the tokens.

In addition, $100,000 in BNB will be airdropped to users who have traded SOL on Binance proportionally based on their total number of trading volume between 2020/04/09 4:00AM (UTC) and 2020/04/28 4:00 AM (UTC). All these actions will be audited by Binance. We’re continuing to discuss and form steps for this plan of action alongside Binance’s team.

We will also restructure the market making agreement in a more transparent way. To stay updated on the execution of this plan, please be sure to join the announcements Telegram. We will issue updates there, as well as issue updates on all of our usual channels, as the plan unfolds.

— –

To stay updated on the execution of this plan, please be sure to join the announcements Telegram. We will issue updates there, as well as issue updates on all of our usual channels, as the plan unfolds. For further questions, please message us on our Telegram chat. We are always available to chat and clarify any confusion.

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Solana Announces a Partnership With dfuse to Collaborate on a Powerful Data Solution for Its High-Throughput Blockchain

We are excited to announce a technical partnership with dfuse, the blockchain API company. Following the recent announcement of the open-sourcing of the dfuse blockchain data stack, Solana is today announcing that it will collaborate with dfuse on the technical integration to provide a powerful data solution for Solana’s high-throughput blockchain.

dfuse has been building high-throughput blockchain data solutions for the past two years, and is currently deployed on many EOSIO and Ethereum chains, with other protocols under active development. We believe their solution will be critical to enabling a web-scale infrastructure capable of supporting hundreds of public and private deployments, including exchanges, trading operations, interactive games, social media platforms, supply chain solutions, and high throughput regulated environments.

By collaborating with Solana to integrate with its blockchain, dfuse will be contributing dfuse Search, its real-time, historical and fork-aware search engine as well as many more foundational building blocks to the Solana ecosystem. Enabled by dfuse, developers will not only be able to build high-performance applications on top of a public blockchain that are only possible with the Solana protocol but also deliver the best historical and real-time user experiences.

“We have decided to collaborate with Solana because of its unique approach at solving many of the challenges encountered in the blockchain space, enabling the protocol to support 50K+ transactions per second at the first layer,” said Alexandre Bourget, co-founder and CTO at dfuse. “By pushing the limits of networks and hardware, they will be a driving force in making our products even more powerful and performant.”

“We are excited to partner with dfuse as the team is at another level when it comes to serving blockchain data,” said Anatoly Yakovenko, Solana’s co-founder and project lead. “They have a history of shipping non-stop, a very deep understanding of the protocols they integrate, and high standards in terms of reliability, performance and innovation with the data services they bring about. Having dfuse on Solana will tremendously accelerate the onboarding of new projects to Solana.”

Once integrated, dfuse will be offering Solana developers data services fulfilling the needs of applications to access transaction history, past state and traces of execution, in its beautiful streaming fashion, with the same reliability dfuse customers have become accustomed to.

About Solana

Solana is a high-throughput blockchain that is currently supporting 50–65k transactions per second and 400ms block times, without complex solutions like sharding or layer-two. As the world’s first web-scale blockchain, Solana will unlock a whole new class of performant applications and facilitate larger scale blockchain adoption. Utilizing a revolutionary innovation called Proof of History, Solana is drastically able to outperform any other existing layer 1 and provide fees at $0.00001 per transaction.

About dfuse

dfuse, the blockchain API company, helps developers build performant applications by organizing the world’s decentralized data.

Powered by its low-latency, open-source architecture, dfuse’s robust APIs make it possible to stream real-time state updates, conduct lightning-fast searches and provide irreversible transaction guarantees, all for the first time using a simple API call. The company’s flagship products, dfuse Search, dfuse Lifecycle, dfuse State and dfuse On-Demand Networks offer a suite of powerful features that make it easy for developers to customize and deliver first-rate user experiences.

To sign up for free and start building, visit dfuse.io.

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Torus is Collaborating with Solana to Build Scalable Mainstream Applications

It’s no secret that the friction for new users to on-board into the blockchain ecosystem is notoriously high, and is arguably one of the biggest reasons for it’s slow adoption. A big driver for this friction is that key management is complicated, with users managing private keys and mnemonic phrases, especially when compared to existing Web 2.0 applications with Single-Sign-On (SSO) solutions via Facebook or Google enabled. The other driver for this friction has been performance and cost. An example most of us are familiar with is the use of cryptocurrencies as payments, where Bitcoin was accepted on the Steam platform at one point, but was eventually dropped due to its price volatility, high transaction fees during network congestion and slow settlement.

As a result, we’re excited to share that both Solana and Torus have decided to collaborate to tackle these issues, as both our teams are focused on making blockchain more accessible, user-friendly and scalable for everyone. At Solana, our edge is in enabling a high-performance protocol with cost-efficient transactions and sub-second confirmation times. And for Torus it’s to provide a simple authentication solution and make key management not only as simple as existing Web 2.0 applications, but also compatible with them.

Currently the Torus network is supported by a collective of validator nodes run by Binance, Etherscan, ENS, Tendermint and other ecosystem stakeholders. Their solution is blockchain agnostic as they believe an improved developer experience/user experience should be accessible for everyone. However, they’ve prioritized this collaboration with Solana to bring the familiar web OAuth user onboarding experience to all developers looking to build applications on Solana. Specifically, this will give them access to seamless key management via Torus’ DirectAuth integration where they have full control over their own login and user onboarding or wallet systems to suit their users’ needs. Regardless of whether they are looking to build fast, secure and scalable exchanges, marketplaces or other applications tailored to mainstream crowds, they’ll be able to find their solution in Solana.

At Solana, our recent performance stress tests proved that the protocol was able to deliver upwards of 59,000 transactions a second, with 400ms blocktimes. With each transaction fee estimated to be 0.00001 USD per transaction (or $10 for 1 million transactions).

These statistics highlight that Solana can provide high thresholds/strong guarantees that transaction costs will remain consistently low even during times of heavy network usage. Also,The low transaction fees make micropayments on decentralised applications possible. Which is where traditional solutions have sometimes struggled as we highlighted earlier.

Example: on November 22, 2019, transaction fees on the Ethereum network were approx. $30 USD each due to high network usage. Imagine buying an item with ETH at that time that cost $30, and having to pay an additional $30 in fees alone, doubling the overall cost to purchase.

With both of our solutions combined we’re confident that we’ll be able to lower the barrier-to-entry for developers and users alike to grow the blockchain ecosystem, and look forward to exploring further collaborations with Torus to continue advancing these efforts in the future!

About Solana

Solana is a high-throughput blockchain that is currently supporting 50–65k transactions per second and 400ms block times, without complex solutions like sharding or layer-two. As the world’s first web-scale blockchain, Solana will unlock a whole new class of performant applications and facilitate larger scale blockchain adoption. Utilizing a revolutionary innovation called Proof of History, Solana is drastically able to outperform any other existing layer 1 and provide fees at $0.00001 per transaction.

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About Torus

Torus provides one-click logins for DApps through the user’s Google, Facebook, Reddit, Discord, Twitch or Email accounts in a single step with no additional installations. With Torus, users can interact with Google emails, Reddit usernames and Discord IDs on the blockchain, regardless of whether the recipient has logged into Torus before.

Try it out athttps://app.tor.us

Join the Torus community for updates on more integrations and drop us a line on any of our social channels if you are keen on integrating Torus with your DApp. Twitter, Telegram, Facebook, LinkedIn, Instagram, YouTube, Reddit