Presentation by Michael Feng, CEO & Co-founder of hummingbot at 0x Meetup on March 28, 2019. For more info about hummingbot, check out: https://www.hummingbot.io/

1. Hummingbot
Decentralized market making

2. A symbiotic relationship
Market
maker
Exchange
liquidity
taker flow

3. Liquidity is a big challenge for DEXs
Bid-ask spread
0.04%
Market depth (ETH)
2,600 sell / 1,200 buy
Bid-ask spread
2.62%
Market depth (ETH)
175 sell / 215 buy
ETH/USDT
WETH/DAI

4. Technical risk
Why are DEX market makers scarce?
Regulatory risk Inventory risk

5. Decentralized market making
ExchangesIndividuals
Institutional-grade
Local client
Open source

6. Exchange connectors
Architecture
Cross-exchange MM
Arbitrage
Pure MM
Strategy plugins
Community-added
User-defined

7. Cross-exchange market making
100
100
10496
99 101

8. Cross-exchange market making (cont)
100
100
10496
99 101
make make
1. On Radar, make buy offer
at $98 and make sell offer
at $102
98 102

9. Cross-exchange market making (cont)
100
100
10496
99 101
make make
98 102
order
filled
1. On Radar, make buy offer
at $98 and make sell offer
at $102
2. When buy offer is filled,
you BUY the asset for $98

10. Cross-exchange market making (cont)
100
100
10496
99 101
make make
98 102
order
filled
1. On Radar, make buy offer
at $98 and make sell offer
at $102
2. When buy offer is filled,
you BUY the asset for $98
3. On Binance, take best
buy offer and SELL the
asset for $99
take

11. Cross-exchange market making (cont)
100
100
10496
99 101
98 102
1. On Radar, make buy offer
at $98 and make sell offer
at $102
2. When buy offer is filled,
you BUY the asset for $98
3. On Binance, take best
buy offer and SELL the
asset for $99
4. Lock in $1 arbitrage
profit
arbitrage

13. The future of finance is peer-to-peer
Hummingbot
P2P network
transport layer
Lending
Derivatives
Asset mgmt
Stablecoins
DeFi protocols

14. Public beta starting April 4th
Join our mailing list
hummingbot.io
Come to our launch
party on April 4
meetup.com/BayCrypto