By
Temitope Olatunji
April 17th, 2024
Harmony (ONE) has now partnered with Hummingbot to decentralize market making activities and in turn empower the token issuers and the general $ONE community.
It is important to note that any project is as strong as its community in the crypto world. That is why Harmony is launching a new brand initiative “$ONE Makers” in association with Hummingbot. Hummingbot is a decentralized market making platform that lets anybody to supply liquidity to $ONE irrespective of who they are.
Participants will have a chance to strengthen the liquidity of $ONE and in return, they will get a certain amount of $ONE tokens. The tokens will get distributed to the $ONE Maker Campaign participants to give back to the community. To participate, users will need to sign up, follow Harmony on Twitter for instructions, and stay tuned in the next few weeks.
The company is on a mission to scale trust for billions of people while concurrently creating a radically fair economy. Thus, the $ONE Makers initiative is a fundamental starting point for rethinking how to empower the community entirely. Through empowerment, the participants will take control over something that was fully centralized in the past.
Decentralization
The fundamental principle of cryptocurrencies is decentralization. But crypto market making has become centralized which made Harmony think of ways to decentralize it. They believe that the ability of market making should lie within the reach of the general public. The community is the best judge to determine which projects are worthwhile and which deserve more liquidity and attention.
With that in mind, Harmony got a suitable partner in Hummingbot. The company always strives to empower its community enabling them to easily transact in cryptocurrency. As we noted earlier, Harmony partnered with Chainlink to offer off-chain connectivity. Chainlink Network is a smart contract interacting technology that offers a highly secure input and output data readily available to a blockchain consensus.
In the current case, Hummingbot lets users create and customize automated, algorithmic trading bots for executing market orders. Thus, it is evident that Hummingbot’s primary target is to decentralize market making. It is easy to use even for non-technical users enabling everyone to execute high-speed trading algorithms.
Hummingbot enables anyone to earn profits through market making by lowering the steep technical barrier. It also supports cross-exchange market making letting users gain from arbitrage opportunities.
Liquidity Bounty
Hummingbot has created a community-driven bounty ecosystem dubbed the ‘Liquidity Bounty.’ Users can use the bot to give liquidity to the token issuers and simultaneously earn rewards depending on the trading volume. The reward is an addition to the profit gained from the normal market making activities.
On the other hand, the token issuers save by avoiding large upfront fees made to market making firms. On the contrary, they reward market makers whenever they fulfill certain objectives. This process is expected to be entirely transparent for the users and the token issuers. Data from bounty participants will undergo analysis to eliminate volume faking, wash trading, and other unscrupulous activities.