Major cryptocurrency exchange Binance launches a market maker program for its high volume users.
Major cryptocurrency exchange Binance announced in a blog post published on Sept. 30 that it is launching a market maker program.
Per the announcement, users whose monthly trading volumes exceed 1,000 Bitcoins (BTC) — or can reach such volumes — and who also have quality market making strategies can immediately join the program. Binance explains that the aim of the initiative is to bring more liquidity to the exchange.
A bid for more liquidity
The firm notes that the program is limited to the spot markets of the trading platform on a “market maker pair list” that will be periodically updated. Each market maker will be given a score based on their performance across various markets, depending on which the exchange will calculate their fees.
More precisely, the score will take into account maker volumes, bid/offer spread, total order size, order duration, weight adjustment on specific pairs. Binance requires applicants to prove their trading volumes. For example, by providing data from another exchange or by talking with their key account manager.
As Cointelegraph reported in April, competing crypto exchange OKEx also announced its market maker program, with incentives for participants in the form of lower trading fees and reduced transaction costs.
Source: , CoinTelegraph
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