Hummingbot Hackathon Bounties for Strategy Design and AMM Arbitrage
Summary
This announcement outlines two Hummingbot hackathon challenges. One invites developers to create a trading strategy with functionality distinct from strategies in a specified software release. The other seeks improvements to an automated market maker arbitrage strategy, including better detection of opportunities and lower transaction costs.
The article explains the basic setup of the arbitrage system: it scans two protocols or exchanges for potential profitable trades. It notes that blockchain transaction execution creates practical differences in how arbitrage should be carried out, and names several supported DeFi venues at the time. The discussion is conceptual and does not give algorithms, profitability measurements, or implementation results. Its scope is also historically bounded to the announced hackathon and software versions; it explicitly excludes infrastructure changes from the second bounty. Readers can take away the design problem, but not a tested trading method.
Key ideas
- The first challenge solicited a new strategy that differed from existing Hummingbot strategies in the referenced release.
- The second challenge focused on improving automated market maker arbitrage logic.
- The arbitrage approach searched across two protocols or exchanges for profitable opportunities.
- Blockchain execution characteristics can require changes to arbitrage methods and transaction-cost handling.
- The announcement provides no tested strategy, performance evidence, or implementation details.
Tags
Full text
# Open DeFi Hackathon - Join the Hunt for Hummingbot Bounties --- date: 2021-04-21 authors: - coinalpha categories: - Competitions - Bounties --- # Open DeFi Hackathon - Join the Hunt for Hummingbot Bounties  Hello Hummingbot Community Developers! Today we are happy to announce that we will be part of the upcoming [Open Defi Hackathon](https://gitcoin.co/hackathon/open-defi/onboard) in May! ## What is Open Defi? The [Open Defi Network](https://opendefi.network/) is _“a global initiative to develop the decentralized financial ecosystem and advance the collaboration of DeFi projects across borders and blockchains.”_ As a part of the cryptocurrency space, we strongly believe in the power of **decentralization** and **community-driven** projects. As an open-source project, our team is always happy to see community contributions to our Github repository, and we are constantly improving our integration of community feedback. To those ends, we will be sponsoring two bounties for the [Open Defi Hackathon](https://gitcoin.co/hackathon/open-defi/onboard), each of them with a **1500 USDT prize for the winner** and 500 USDT in tips distributed to meaningful submissions. ### Bounty #1 The first bounty will be offered for creating a new strategy. Developers are free to create any type of strategy, so get creative and surprise our community with an innovative way to use Hummingbot. To prepare for this bounty, take a look at the [strategy folder of our source code](https://github.com/hummingbot/hummingbot/tree/master/hummingbot/strategy) and the [documentation page related to new strategies](../../../strategies/index.md). For inspiration, take a look around the [open issues on Hummingbot Repository](https://github.com/hummingbot/hummingbot/issues). There are some interesting ideas there. The only restriction for this bounty is that this new strategy must not have the same functionality as the strategies released with version 0.38 of Hummingbot. ### Bounty #2 The second bounty will be awarded for improvements to the Automated Market Maker Strategy. In version 0.33, we added the possibility of detecting arbitrage trades on AMM protocols with the strategy called `amm-arb`. A few versions later, Hummingbot traders can now look for these opportunities on Uniswap, Balancer, Terra, and Perpetual Finance. Using a standard arbitrage trading logic, Hummingbot scans two protocols (or centralized exchanges) to look for profitable trading opportunities. Blockchains have some particularities, however, concerning how transactions are executed, which makes different approaches to performing an arbitrage operation. For this bounty, developers will have to create significant improvements to the strategy, ranging from detecting profitable opportunities to reducing transaction costs. One small note: our team is currently working on improving the Gateway code (needed to execute the strategy), so this bounty is only related to the strategy itself. Gateway pull requests will not be considered for this bounty. ### Conclusion Our team is excited about this hackathon, and we are expecting some great contributions from our community! If you haven’t already, join our [Discord](https://discord.hummingbot.io/) to start discussing the bounties on the #dev channels, where our development team will be around to help with any questions for bounty hunters. Good luck, and good hunt!
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.