Binance has announced the introduction of its first altcoin-only spot liquidity program, catering specifically to small and mid-sized market makers. This Altcoin Liquidity Enhancement Program aims to diversify trading options while offering competitive industry rebates to attract liquidity providers focusing on altcoin markets.
Key Features of the Program
- Exclusive Altcoin Focus: Participants are only required to engage in altcoin trading pairs, eliminating mandatory involvement in mainstream currencies like Bitcoin.
Tiered Rebates:
- 0.005% rebate for market makers achieving 0.5% of the market’s monthly trading volume.
- 0.01% rebate for those securing 1% market share.
Supported Trading Pairs
Initial pairs include:
- INIT/USDT
- EOS/USDT
- ICP/USDT
- TON/USDT
- FIL/USDT
(Full list available in Binance’s official announcement.)
Objectives and Eligibility
According to Catherine Chen, Head of VIP and Institutional Business at Binance:
"Existing liquidity programs often favor large market makers. This initiative levels the playing field for smaller participants to gain a competitive edge in altcoin markets."
Eligibility criteria:
- Minimum $20M trading volume over the past 30 days.
- Demonstrated high-quality liquidity provision strategy.
Timeline
- Application review: Starts June 9.
- Rebate distribution: Begins June 17.
FAQ
1. Why is Binance launching an altcoin-specific program?
To address market demand for diverse trading options and support smaller liquidity providers neglected by mainstream-focused programs.
2. How do the rebates compare to industry standards?
Binance’s tiered structure offers among the highest rebates for altcoin market making, incentivizing participation without compromising liquidity quality.
3. What documentation is needed to prove liquidity strategy?
Applicants must submit historical trading data and a detailed plan outlining their market-making approach for altcoins.
👉 Explore more about altcoin trading strategies
This program underscores Binance’s commitment to fostering inclusive growth in crypto markets while enhancing altcoin liquidity for traders worldwide.