Hummingbot 1.27 Adds Funding Arbitrage and Cross-Exchange Market Making
Article Hummingbot docs
Summary
Hummingbot 1.27 introduces Strategy V2 templates for funding rate arbitrage and cross-exchange market making (XEMM). The funding strategy compares current perpetual futures funding rates across configured exchanges for selected tokens, then evaluates whether the rate difference clears a user-set profitability threshold. The XEMM executor supports cross-exchange market-making operations, and an accompanying controller supports multiple order levels.
The release also adds Coinbase Advanced Trade, Kucoin HFT, and Cube spot connectors, alongside installation and connector updates. These notes describe features and intended mechanics, but give no performance data, backtests, execution-cost analysis, or risk controls for either strategy. Funding differences and cross-exchange quotes can be affected by fees, slippage, liquidity, and changing market conditions, none of which the release quantifies. Treat the strategies as framework capabilities rather than evidence of profitability.
Key ideas
- Funding arbitrage compares rates across configured perpetual futures venues and applies a profitability threshold before considering entry.
- XEMM is a Strategy V2 component for making markets across exchanges.
- A controller variant supports multiple order levels.
- The release notes list new spot connectors but do not provide strategy performance evidence.
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Full text
# Hummingbot v1.27.0 Release Notes # Hummingbot v1.27.0 Release Notes *Released on April 29, 2024* ## Introduction We are thrilled to announce the release of Hummingbot version 1.27.0! In this update, we have added new strategy templates that use the new StrategyV2 framework: * **Funding Rate Arbitrage** helps users capitalize on discrepancies in perpetual futures markets * **Cross Exchange Market Making**: V2 version of our popular XEMM strategy that enables more efficient cross-exchange market making. We have also streamlined the **Docker installation** process, making it easier and quicker to get started with Hummingbot. **Also New in This Release** * **Coinbase Advanced Trade** spot CEX connector * **Kucoin HFT** spot CEX connector * **Cube** spot CEX connector | Repository | Description | GitHub Release | DockerHub Release | |------------|-------------|----------------|-------------------| | [Hummingbot](https://github.com/hummingbot/hummingbot) | Core Trading Engine | [`v1.27.0`](https://github.com/hummingbot/hummingbot/releases/tag/v1.27.0) | [`version-1.27.0`](https://hub.docker.com/r/hummingbot/hummingbot/tags?name=version-1.27.0) | | [Gateway](https://github.com/hummingbot/gateway) | DEX Connector Middleware | [`v1.27.0`](https://github.com/hummingbot/gateway/releases/tag/v1.27.0) | [`version-1.27.0`](https://hub.docker.com/r/hummingbot/gateway/tags?name=version-1.27.0) | ## How to Update ### Docker Make sure to exit all running containers using **docker compose down** ``` docker compose down ``` Run the following command to pull the latest Docker image: ``` docker pull hummingbot/hummingbot:latest ``` Restart containers ``` docker compose up -d ``` ### Source Update your Hummingbot branch to this release by running: ``` git pull origin master ``` ## Monthly Community Call Join the next community call on [Discord](https://discord.gg/hummingbot) to learn about the new features in this release and other Hummingbot news: * **Date**: Wednesday May 1st * **Time**: 4pm GMT / 12am SIN (May 1st) / 11am EST / 8am PST * **Location**: [Hummingbot Discord](https://discord.gg/hummingbot) * **Event Link**: <https://discord.gg/8TsJdCnc?event=1199751917715329064> <iframe style="width:100%; min-height:400px;" src="https://www.youtube.com/embed/3wVcoOpdwus" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> For more community events, check out the [Hummingbot Events Calendar](https://lu.ma/u/hummingbot). ## New Strategy: Funding Rate Arbitrage <iframe style="width:100%; min-height:400px;" src="https://www.youtube.com/embed/Ly8R5g3juxw?si=bW_5vralw6zZd-0s" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> The new [**Funding Rate Arbitrage**](https://github.com/hummingbot/hummingbot/blob/master/strategies/scripts/funding_rate_arb.py) sample script works by exploiting differences in funding rates across different cryptocurrency exchanges to make a profit. It evaluates the current funding rates across all configured connectors for the specified tokens. The script calculates the profitability of entering trades based on the difference in these rates and compares it against a profitability threshold set in the configuration. **Pull Request:**: [#6943](https://github.com/hummingbot/hummingbot/pull/6943) ## New Strategy: Cross Exchange Market Making (XEMM) [XEMM Executor](../strategies/v2-strategies/executors/xemm-executor.md) is a new **Strategy V2 component** which is designed to handle cross-exchange market making (XEMM) operations within the Hummingbot framework. You can use the [v2_xemm.py](https://github.com/hummingbot/hummingbot/blob/master/strategies/scripts/v2_xemm.py) script to run it. We have also added a Controller version taht supports multiple order levels: [xemm_multiple_levels.py](https://github.com/hummingbot/hummingbot/blob/master/controllers/generic/xemm_multiple_levels.py). **Pull Request:** [#6946](https://github.com/hummingbot/hummingbot/pull/6946) ## Updated Docker Installation Process We have simplified and updated the [Docker installation](../installation/hummingbot-client.md) instructions so that users can install from the base Hummingbot Github repo. This change aims to enhance user experience by providing a more organized and straightforward approach to using Hummingbot's powerful features. The page includes [advanced configuration examples ](../installation/hummingbot-client.md) as well that were previously hosted in the `deploy-examples` repo, which now features a single, comprehensive deployment example designed to launch multiple bots efficiently. ## Updated CEX Connector: Coinbase **Pull Request:** [#6887](https://github.com/hummingbot/hummingbot/pull/6887) - Added Coinbase Advanced Trade connector **Thanks to [MementoRC](https://github.com/MementoRC) for this contribution! 🙏** ## New CEX Connector: Cube Exchange [Cube Exchange](https://www.cube.exchange/) is an MPC-based exchange that boasts high security & low latency when trading. It is being built by a team around ex-Solana engineer Bartosz Lipinski and aims to be the slickest trading experience the crypto space has ever seen. This connector has been developed by the **Robotter.ai** team, most notably **Wojak**, who put in a massive effort to deliver a high-quality integration of Cube into Hummingbot. For more information, refer to the [Cube](../exchanges/cube/index.md) connector docs. **Pull Request:** [#6930](https://github.com/hummingbot/hummingbot/pull/6930) **Snapshot Proposal:** [NCP-10](https://snapshot.org/#/hbot-ncp.eth/proposal/0x3fba9b7642438d957258923bb4207b252c4a9ec712b93cf84f1b6e25b9077385) **Thanks to [mlguys](https://github.com/mlguys) for this contribution! 🙏** ## Other Updates ### Hummingbot - [#6787](https://github.com/hummingbot/hummingbot/pull/6787) - Refactored `balance` command and add allowances **Thanks to [isreallee82](https://github.com/isreallee82) for this fix! 🙏** - [#6937](https://github.com/hummingbot/hummingbot/pull/6937) - Added `injective_fee_calculator_multiplier_config` for [Injective](../exchanges/injective.md) **Thanks to [aarmoa](https://github.com/aarmoa) for this fix! 🙏** - [#6940](https://github.com/hummingbot/hummingbot/pull/6940) - Updated [Binance](../exchanges/binance/index.md) & OKX `nextFundingTime` to 10-bit integer **Thanks to [yancong001](https://github.com/yancong001) for this fix! 🙏** - [#6956](https://github.com/hummingbot/hummingbot/pull/6956) - Updated [Vertex's](../exchanges/vertex.md) hostnames **Thanks to [Wandering-Consciousness](https://github.com/Wandering-Consciousness) for this fix! 🙏** - [#6961](https://github.com/hummingbot/hummingbot/pull/6961) - Added Rate Oracle for Coinbase Advanced Trade v2.1 **Thanks to [MementoRC](https://github.com/MementoRC) for this fix! 🙏** - [#6962](https://github.com/hummingbot/hummingbot/pull/6962) - Fixed an issue where the [Hyperliquid](../exchanges/hyperliquid.md) funding rate was not updated **Thanks to [yancong001](https://github.com/yancong001) for this fix! 🙏** - [#6966](https://github.com/hummingbot/hummingbot/pull/6966) - Added support for High-Frequency Trading (HFT) accounts on the [KuCoin](../exchanges/kucoin/index.md) Pro platform **Thanks to [supervik](https://github.com/supervik) for this contribution! 🙏** ### Gateway - [#299](https://github.com/hummingbot/gateway/pull/299) - Added functionalities to enable interaction with **Pancakeswap** on the **Ethereum** mainnet **Thanks to [isreallee82](https://github.com/isreallee82) for this fix! 🙏** - [#306](https://github.com/hummingbot/gateway/pull/306) - Added `poolID` to Gateway AMM endpoints **Thanks to [vic-en](https://github.com/vic-en) for this contribution! 🙏**
Shown in full with attribution under the source's licence. Licence: Apache-2.0
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.