New Altcoin LiquidityBoost Program with rebates of up to 1 bps will bridge a gap for altcoin liquidity and complement existing programs to benefit users and token projects
Binance, the global blockchain ecosystem trusted by over 275 million users worldwide, announced a new spot Liquidity Program, “Altcoin LiquidityBoost Program,” focusing on altcoins to meet demand from small and medium-sized liquidity providers who want to concentrate on altcoin market-making. With the new liquidity program, Binance aims to offer the most rewarding altcoin market-making rebates in the industry and attract more diverse liquidity providers to complement the exchange’s existing liquidity programs, further enhancing its unparalleled liquidity and competitive spread.
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Liquidity Programs aim to provide liquidity and depth to the crypto market and incentivize liquidity providers through competitive fee structures and rebates. Liquidity providers play an important role in ensuring market liquidity and stability, by posting buy and sell orders on an ongoing basis. This helps to ensure users can execute their trades faster, more frequently, and with less slippage.
Currently the existing Liquidity Programs across major exchanges either require liquidity providers to market-make across all pairs on the exchange where the volume weightage skews towards bitcoin and other large cap tokens, or are focused on crypto-fiat trading pairs. This means smaller and mid-sized liquidity providers are not able to compete effectively against larger players.
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Binance’s new liquidity program is the first offered by a major cryptocurrency exchange to focus on altcoins, and a qualifying liquidity provider can enjoy up to 1 bps in rebates if they meet the volume requirements for selected altcoins. By comparison, existing spot maker programs rebates on major exchanges do not exceed 0.8 bps and require participants to provide liquidity for the exchange’s full range of spot trading pairs. Participants with quality liquidity providing strategies and whose 30-day trading volume exceeds 20,000,000 USDT equivalent on Binance Spot and Margin or other platforms are invited to apply.
Altcoin LiquidityBoost Program will complement the largest crypto exchange’s existing spot Liquidity Programs to give participants more choices:
- Binance Spot Maker Program covers all spot and margin trading and enrolled participants receive 0 maker fee and can earn rebates by qualifying for higher performance tiers based on their volume. The Spot Market Program currently offers a maximum rebate of 0.8 bps.
- Binance Fiat Maker Program covers specified fiat markets listed on Binance.com, and enrolled participants will receive maker rebates in specific fiat currency. The Fiat Maker Program currently offers a maximum rebate of 1 bps.
- New Binance Altcoin LiquidityBoost Program focuses on specific altcoins and has two tiers: liquidity providers are required to meet a maker volume percentage of 0.5% and 1% to qualify for the program’s Tier 1 and 2 respectively and will enjoy a Maker Fee Rebate Rate of 0.5 bps for Tier 1 and 1 bps for Tier 2. Qualification for this new Liquidity Program will be effective from 2025-06-09 and the maker fee rebates will commence from 2025-06-17.
Catherine Chen, Head of Binance VIP & Institutional commented, “We are responding to demand from market participants, particularly small and medium-sized liquidity providers, who want the choice to focus on market-making for altcoins. Our new altcoin-focused liquidity program helps liquidity providers of all levels compete in the marketplace without the pressure to market-make across bitcoin and other large cap crypto.”
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“Under our new Liquidity Program, a liquidity provider will enjoy rebates of 1 bps if they meet the volume requirements of selected altcoins. As the industry leader, Binance is taking the lead to give liquidity providers of all sizes as well as token projects more support to grow users benefit the most when there is more diversity and healthier liquidity,” she added.
Altcoin LiquidityBoost Program will support 18 altcoins at launch and Binance will continuously review the eligible altcoins to respond to market demand.
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Source: businesswire
