Crypto exchange, Binance is launching a market maker program.
On Sept 30th, Binance announced in its blog post that it is introducing a market program for those users whose monthly volume exceeds 1000 Bitcoin or BTC.
The program is also for those users who have quality market making strategies. The crypto exchange adds that the aim of the program is to add more liquidity to the exchange.
More Liquidity
Binance said that ‘the program is limited to the spot markets of the trading platform on a “market maker pair list” that will be periodically updated.’
The market maker will give a rating or score based on the performance across the various markets. It will depend on which exchange will calculate their fees.
‘The score will take into account maker volumes, bid/offer spread, total order size, order duration, weight adjustment on specific pairs.’
The exchange will require applicants to prove their trading volumes. It can be done by providing data from another exchange or by talking with their key account manager.
In April, another crypto exchange OKEx also announced its market maker program ‘with incentives for participants in the form of lower trading fees and reduced transaction costs.’