When you run strategies on multiple exchanges, there may be instances where you need to utilize an exchange rate to convert between assets.
For example, if you make a market in the ==WETH/DAI== pair on a decentralized exchange, you may want to hedge filled orders using the ==ETH/USD== pair on Coinbase or the ==ETH/USDT== pair on Binance. Using exchange rates for USDT and DAI against USD allows Hummingbot to take into account differences in prices between stablecoins.
Exchange rate class
To performance these conversions, Hummingbot includes an exchange rate class in
conf_global.yml in the
/conf directory. Here, you can either set a fixed exchange rate or tell Hummingbot to use a price feed API to dynamically set the exchange rates in real-time.
Example: default configuration
In the file
exchange_rate_conversion: - - DAI - 1.0 - COINCAP_API - - USDT - 1.0 - COINCAP_API - - USDC - 1.0 - COINCAP_API - - TUSD - 1.0 - COINCAP_API
By default, Hummingbot uses the CoinCap API to set the USD exchange rate for the stablecoins above.
Example: custom configuration
In the file
exchange_rate_conversion: - - DAI - 0.97 - OVERRIDE - - USDT - 1.0 - OVERRIDE - - USDC - 1.0 - COINCAP_API - - TUSD - 1.0 - COINCAP_API - - PAX - 1.0 - COINCAP_API
To set a fixed exchange rate, replace
OVERRIDE and set the fixed exchange rate. In the example above, 1 DAI is assumed to equal $0.97 USD, and 1 USDT is assumed to equal $1.00.
You can also add new crypto-assets. In the example above, the addition of PAX allows Hummingbot to use the PAX/USD exchange rate from CoinCap.