find-xemm-opps

find-xemm-opps

Find Cross-Exchange Market Making (XEMM) opportunities by analyzing order book depth and liquidity across connected exchanges.

XEMM involves quoting on one exchange (the maker side) while hedging fills on another (the taker/hedge side). The best opportunities exist where:

• One exchange has a wide spread and thin book (maker side — room to quote profitably)
• Another has a tight spread and deep book (taker side — cheap to hedge)
• A mid-price difference exists between them

Prerequisites

Hummingbot API must be running with exchange connectors configured:

bash <(curl -s https://raw.githubusercontent.com/hummingbot/skills/main/skills/lp-agent/scripts/check_prerequisites.sh)

Workflow

Step 1: Define Token Pair

# Scan for SOL/USDT XEMM opportunities
python scripts/find_xemm_opps.py --base SOL --quote USDT

# Include fungible equivalents
python scripts/find_xemm_opps.py --base ETH,WETH --quote USDT,USDC

# Filter to specific connectors
python scripts/find_xemm_opps.py --base BTC --quote USDT --connectors binance,kraken,coinbase,okx

# Minimum mid-price spread between exchanges (default: 0.0%)
python scripts/find_xemm_opps.py --base SOL --quote USDC --min-spread 0.05

Step 2: Interpret Results

The script outputs a market overview table and ranked XEMM opportunity pairs:

====================================================================
  XEMM Opportunities — SOL / USDC
  Order book depth: 20 levels | Sources: 18
====================================================================

  Exchange               Pair            Mid     Spread    Bid Depth    Ask Depth    B/A
  ---------------------- -------------- ---------- -------- ------------ ------------ ------
  bitstamp               SOL-USDC         $87.45   0.120%       $23.4K       $18.9K   1.24
  binance                SOL-USDT         $87.51   0.015%      $412.0K      $389.0K   1.06
  okx                    SOL-USDT         $87.56   0.023%      $287.0K      $301.0K   0.95
  ...

  Top XEMM Opportunities (MAKER → hedge on TAKER):
  ----------------------------------------------------------------

  #1  Score: 8.42
      MAKER  bitstamp               $87.45  spread 0.120%  depth $42.3K
      TAKER  binance                $87.51  spread 0.015%  depth $801.0K
      Mid-price gap: 0.0686%  |  Spread ratio: 8.0x  |  Depth ratio: 18.9x

Columns explained:

Column	Description
Mid	Mid-price between best bid and ask
Spread	Bid-ask spread as % of mid
Bid/Ask Depth	Total quote value of top-N order book levels
B/A	Bid-to-ask depth ratio (>1 = more buy pressure)
Spread ratio	Maker spread ÷ taker spread — higher = better maker edge
Depth ratio	Taker depth ÷ maker depth — higher = better hedge liquidity

Script Options

Option	Description
--base	Base token(s), comma-separated (e.g., ETH,WETH)
--quote	Quote token(s), comma-separated (e.g., USDT,USDC)
--connectors	Filter to specific connectors (optional)
--depth	Order book depth per exchange (default: 20)
--min-spread	Minimum mid-price spread % between exchanges (default: 0.0)
--include-btc-markets	Include btc_markets (Australian residents only)
--include-ndax	Include ndax (Canadian residents only)
--json	Output as JSON

Environment Variables

export HUMMINGBOT_API_URL=http://localhost:8000
export API_USER=admin
export API_PASS=admin

Scripts check for .env in: ./hummingbot-api/.env → ~/.hummingbot/.env → .env

Requirements

• Hummingbot API running
• At least 2 exchange connectors configured with API keys