Firefly, a decentralized exchange (DEX) for perpetual swaps and options powered by Substrate, is thrilled to announce the beginnings of an exciting partnership with Hummingbot. Firefly leverages Polkadot’s shared security, high throughput and low latency transactions, micro-gas fees, and interoperability across networks to deliver a DEX that is performant and secure. This integration will allow traders to create and run automated, high-frequency, arbitrage, and market making strategies on Firefly's DEX.
Democratizing Access to Institutional-Grade Algorithms with Hummingbot
Hummingbot is open-source software with an aim to decentralize access to automated trading strategies by allowing anyone in the world to deploy sophisticated arbitrage and market making bots across various digital assets and exchanges.
Firefly and Hummingbot have symbiotic operating models making them natural partners for:
- Perpetual-to-Perpetual & Perpetual-to-Spot Arbitrage: Hummingbot enables a variety of arbitrage strategies to be deployed across exchanges. This functionality will allow users to take advantage of price differences between numerous assets, and capture the rewards while facilitating price efficiency on Firefly. With the upcoming integration, Hummingbot will do the hard work of monitoring arbitrage opportunities between Firefly's perpetual swap markets and perpetual or spot markets on other exchanges!
- Liquidity Arbitrage: Market making has traditionally been the province of experts and institutions with large balance sheets. Due to their sizes, large firms keep liquidity risk in check but focusing on large exchanges and large-cap trading pairs, leaving markets on smaller exchanges prone to inefficiencies from lack of liquidity. The integration with Hummingbot presents an exciting opportunity for Firefly users to exploit this niche by taking advantage of arbitrage opportunities in underserved markets.
- Propagating Powerful Trading Tools: The vision behind Firefly aligns perfectly with Hummingbot's mission to offer everyone seamless access to powerful financial tools, previously reserved for the few. Allowing users to deploy professional, cross-exchange market making, and arbitrage strategies with just a few clicks brings the joint pursuit closer to reality. The integration increases the scope of what's possible in DeFi broadly, opening access to institutional-grade activity for amateurs and experts alike.
- Cross Community Opportunities: We are also aligned on the vision of incentivizing traders and developers to carry out financial experiments and innovate.
This integration will grant Firefly's users access to automated trading strategies and serves to strengthen the liquidity and efficiency of the markets on Firefly. Hummingbot is an excellent partner, both in functionality and in the long-term vision. Over the next several weeks, the Firefly team will build a Hummingbot connector to kick-start the integration! The connector will be available in a separate code repository before being merged into Hummingbot’s main codebase later this year.
Disclaimer: The products available on Firefly are not available for use by US Persons or residents of any country or jurisdiction subject to US sanctions.