Hummingbot has released a novel on-chain integration with Injective to bring next-gen trading infrastructure into the ecosystem.
Hummingbot is the leading provider of high frequency trading bots that focuses on areas such as arbitrage, market making and advanced trading. Using Hummingbot, everyday users can take part in a range of sophisticated trading strategies to further enhance their crypto journey.
Specifically, Hummingbot is now directly connected to Injective’s shared orderbook module for all spot and perpetual markets. As a result, anyone can easily begin to trade with advanced algorithms across all exchanges built on Injective such as Helix.
Video Demo of Using Hummingbot on Injective: Link
What does Hummingbot Bring to Injective?
Injective is the only blockchain built specially for financial applications. A core vertical within its ecosystem is trading infrastructure, as Injective is the first blockchain to introduce a fully on-chain orderbook module that creates a shared liquidity environment for any DEX built on top. As a result, a dApp on Injective can tap into the liquidity of all DEXs within the ecosystem. For instance, a user’s buy order on Helix can be matched with another user’s sell order on Wavely. So a builder on Injective can take advantage of Injective’s plug-and-play modules to rapidly build dApps with liquidity from day one.
The Hummingbot launch on Injective takes these capabilities to entirely new heights. Now traders have access to open source connectors with which they can launch a wide array of trading strategies to effectively carry out pure market making, cross exchange market making and other trading strategies on-chain. For the first time, traders can seamlessly trade across Binance and Helix for example using open source algos. Having Hummingbot spot and perpetual market connectors simultaneously will also allow traders to operate spot-perp arbitrage and hedging strategies using the same wallet.
Hummingbot also brings directional trading frameworks. Traders now can set specific conditions, such as placing an on-chain stop-loss or take-profit order, when an asset reaches advanced data metrics based on technical analysis frameworks, such as bollinger bands, RSI, etc. Injective is the only chain today to have auto executing smart contracts so now builders can combine the directional frameworks with auto execution possibilities to execute far more sophisticated trading strategies for DEXs built on Injective.
Injective uniquely is the first chain to include frequent batch auctions to prevent any form of frontrunning or MEV. So any user utilizing Hummingbot’s connector to Injective will be able to place trades on DEXs created on Injective without any possibility of malicious trading behavior that continues to be a rampant problem on other blockchains today.
New projects can also utilize the Hummingbot Dminer platform to incentivize trading of new markets, leading to new ways for the community to earn.
The Future of On-Chain Trading Built on Injective
Injective is the first chain optimized to support financial applications, such as truly on-chain trading infrastructure.
The Hummingbot integration marks a major milestone in the Injective ecosystem by providing traders with advanced toolings previously only available on centralized exchange platforms. Builders can launch robust DEXs on Injective that are created for the people, democratizing trading strategies while offering powerful tools for all.
Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.
Hummingbot is open source software that helps you build high-frequency crypto trading bots that specialize in market making and arbitrage strategies. Hummingbot democratizes high-frequency trading for the cryptocurrency market, empowering the individual with automated trading capabilities (e.g., market-making and arbitrage) previously only available to Wall Street hedge funds. Hummingbot is backed by a number of prominent funds such as Initialized Capital, Slow Ventures and more.