The well-known crypto-exchange Binance has announced a new spot liquidity program focused on altcoins: the “Altcoin LiquidityBoost Program.” The goal is to offer more rewarding discounts in the sector for market-making on altcoins and attract more diversified liquidity providers.
Binance and the new initiative “Altcoin LiquidityBoost Program”
Binance has announced the new “Altcoin LiquidityBoost Program” for small and medium-sized liquidity providers, who want to focus on market-making of altcoins.
In general, liquidity providers play an important role in ensuring market liquidity and stability by continuously sending buy and sell orders. By doing so, users can execute their trades faster, more frequently, and with less slippage.
The objective of the new Altcoin LiquidityBoost Program is to offer the most rewarding discounts in the industry for market-making on altcoins. Not only that, the idea is also to attract more diversified liquidity providers.
In this way, Binance can integrate the existing liquidity programs into the crypto-exchange, further enhancing the unparalleled liquidity and competitive spread.
Currently, the existing liquidity programs on major exchanges require liquidity providers to make a market on all listed trading pairs.
Here, the weight of the volume is concentrated on Bitcoin and other major large-cap crypto. This means that small and medium-sized liquidity providers are not able to compete effectively with the larger operators.
Binance and the new program for small and medium-sized liquidity providers
With the new “Altcoin LiquidityBoost Program” from Binance, a qualified liquidity provider can enjoy discounts of up to 1 bps if they meet the volume requirements for the selected altcoins.
To participate, the candidates must have quality liquidity provision strategies, with a 30-day trading volume exceeding 20,000,000 USDT equivalent on Binance Spot and Margin or other platforms.
The discount up to 1 bps is greater compared to the existing spot maker programs on the main exchanges, which do not exceed 0.8 bps.
The qualification for this new Binance liquidity program will be effective starting from June 10, and the maker fee discounts will begin on June 18.
In this regard, Catherine Chen, Head of Binance VIP & Institutional, commented:
“We are responding to the demand of market participants, particularly small and medium-sized liquidity providers, who want the opportunity to focus on market-making for altcoins. Our new liquidity program focused on altcoins helps liquidity providers of all levels compete in the market without the pressure of market-making on bitcoin and other large-cap cryptos.
With our new liquidity program, a liquidity provider will enjoy discounts of 1 bps if they meet the volume requirements of selected altcoins. As an industry leader, Binance is taking a leading role in giving liquidity providers of all sizes and token projects greater support to grow – users benefit the most when there is more diversity and healthier liquidity.”
The SEC closes the case after two years
Recently, the Securities and Exchange Commission (SEC) of the USA announced its intention to dismiss the case against Binance, after two years.
The verdict comes after, in February, the SEC and Binance had jointly requested a suspension of the case, for a full 60 days.
Richard Teng, CEO of Binance, commented on the decision to file, paying tribute to the Trump Administration and the new SEC President Arkins.
