Hi Onomy Community! We are Pecunia.Finance, a Web3 Project Management DAO which specializes in building DEX connectors for Hummingbot (High-Frequency Trading OSS). We would like to propose a project to build an ONEX Connector for the Hummingbot Gateway repository.
The following information covers the entire roadmap for such a project, but the first proposal will be for Milestone 1 alone.
Abstract
Pecunia.Finance builds connectors between DEXs and the Hummingbot community-governed repository.
Hummingbot is a free, open-source, high-frequency trading bot that executes custom and pre-built automated, algorithmic trading strategies on connected centralized and decentralized cryptocurrency exchanges. Utilizing a modular architecture, Hummingbot enables exchange connectors and trading strategies to be built independently, facilitating contribution by a globally distributed community of developers and quant-traders.
Having an ONEX Connector in the Hummingbot repository would enable algo-traders and private or community market-makers to deploy high-frequency trading strategies between ONEX and other markets supported natively by Hummingbot (both DEXs and CEXs).
Motivation
ONEX is a prime candidate for the Hummingbot ecosystem and we want to position ourselves as the go-to team for building and maintaining Cosmos-based DEX Connectors in Hummingbot. As grant recipients, we would be able to fund the bounties necessary to complete the project, maintain the DAO and thereby also our contributed code, as well as gain additional reputation.
Specification
You can find a plethora of information in our general connector proposal here: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.
Milestone 1 is a modular deliverable which can be used to decide further development and the scope thereof. A general template can be found here: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.
Milestone 1 serves as an assement to determine the feasibiliry of the overall project.
Here you can find an high-level summary of the whole project’s scope:
- Analysis & Report
- Estimated Scope of Project (how many milestones needed)
- Existing Strategy Analysis (will existing strategies work or is a custom strategy needed)
- Foreseeable Obstacles or Potential Blockers
- Hummingbot Governance Proposal - Add ONEX Connector
- Make Proposal
- Campaign in Hummingbot Community
- Vote with Pecunia Finance DAO $HBOT reserve
- Middleware Development
- ONEX Gateway Connector
- Onomy Gateway Chain (unless Cosmos Chain can be used)
- Hummingbot Client Changes
- Client Commands
- Strategy Compatibility
- Documentation
- Hummingbot Docs for ONEX Connector (and Onomy Chain)
- Official Hummingbot ONEX Connector Guide
- ONEX Hummingbot Guide for Onomy Community
- Review & Merge PR
- Create PR with Contributor Guidelines
- Hummingbot Reviews PR and makes change requests
- Apply any requested changes
- Bug Bounties & Updates
- Reserve for funding issues directly through Hummingbot Bounties
- Small changes & reasonable fixes by DAO
- No new features would be added to the ONEX/Onomy SDK by this project.
Rationale
The specifications are according to the Hummingbot Contribution Guidelines, set forth by the Hummingbot Community Governance (Snapshot.org using $HBOT tokens on Ethereum) and executed/enforced by the Hummingbot Foundation.
The first milestone of the project is an analysis of the project scope using a comparison of the ONEX SDK and existing Hummingbot code. The Hummingbot Gateway architecture is designed to allow multiple connectors upon the same chain. If the ONEX functionalities are compatible with the existing Cosmos Chain within Hummingbot Gateway, the additional milestone of creating an Onomy Chain base may not be necessary - saving development requirements and costs.
The analysis also reveals the probability that a custom strategy is needed or if the ONEX Connector might work with existing strategies, as some have already been adapted for Cosmos/IBC compatibility.
Reference Implementation
We are the same team which built the Cosmos Chain base, Osmosis Chain base, Osmosis DEX Connector, and created/maintain the documentation in Hummingbot for each, including the official guide. We have received grants for these contributions from SifDAO, Hummingbot Foundation, and Osmosis Grants Program.
- Osmosis Connector PR: feat/ Osmosis Chain/Connector by nkhrs · Pull Request #277 · hummingbot/gateway · GitHub
- (Osmosis) Hummingbot Docs: Osmosis - Hummingbot
- Bespoke Osmosis User Guide: https://osmosis-connector.pecuniafinance.com/
- Osmosis Grants Program: https://grants.osmosis.zone/grant-recipients
- Official Hummingbot Ecosystem Partners (article): Announcing Botcamp and the Expanding Hummingbot Ecosystem - Hummingbot
Security Considerations
Hummingbot is a locally run program which uses an API (for CEXs) or trading-wallet private key (for DEXs) to make requests directly to an RPC for the relevant endpoints of a given exchange. Essentially, Hummingbot acts as a user would in a front-end - just much faster.
There is no discernible threat to the security of ONEX or Onomy SDK.
Author Name & Contact Information
- Author: PecuNick - core contributor @ Pecunia.Finance
- Telegram: @Pecunick
- Pecunia.Finance Website: https://pecuniafinance.com/
Additional Information
Hummingbot Volumes & Statistics
Since release in April 2019, Hummingbot has enabled 3,200+ individual market makers to fill $2.4 billion in trading volume - an average of $12.3 million in daily volume, for 72+ token issuers and exchanges, achieving 100M+ in average 24h volume, with 13+ core trading strategies, and a growing user base (1M+ downloads) providing liquidity between different exchanges like Ascendex, Binance, Gate.io, KuCoin, and now Osmosis.
Hummingbot analytics are calculated using voluntarily submitted trading volumes collected hourly by participating users. As free open-source software, it cannot be determined what the full trading volume of all Hummingbot users is. Reported metrics can be found here: https://p.datadoghq.com/sb/a96a744f5-a15479d77992ccba0d23aecfd4c87a52?_ga=2.104932355.1643890758.1672704236-604918202.1670986042&fromUser=false&refresh_mode=sliding&tpl_var_environment[0]=*&tpl_var_exchange[0]=*&tpl_var_instance_id[0]=*&tpl_var_version[0]=*&from_ts=1706546253454&to_ts=1709138253454&live=true
Proposal #1 - MS1 - SDK Research & Analysis
We would like to start with a proposal for funding of Milestone 1, to determine the estimated scope of the rest of the project.
The estimated budget for this milestone is $5,000 USD (in NOM) to cover what is essentially the first steps of creating a connector, which are comparing and testing the relevant codebases for the relevant functionalities and interfaces of AMM strategies such as AMM Arbitrage (AMM_ARB) and Cross-Exchange Market Making (XEMM).