Crypto Quill

Binance, the world’s leading cryptocurrency exchange, has announced an upgrade to its USD-Margined Futures Liquidity Provider Program. The upgrade aims to provide more benefits and incentives to the liquidity providers who contribute to the stability and efficiency of the USD-Margined Futures market.

What is the USD-Margined Futures Liquidity Provider Program?

The USD-Margined Futures Liquidity Provider Program is a special program that Binance launched in July 2022 to encourage market makers to provide liquidity and depth to the USD-Margined Futures market. Market makers are traders who place both buy and sell orders in the order book, creating a more active and competitive market.

The program offers maker fee rebates to the qualified liquidity providers, based on their weekly maker volume percentage and/or quoting ranking. The maker fee rebates can be as high as -0.005%, meaning that the liquidity providers can earn money from placing orders, instead of paying fees.

The program also provides daily and weekly reports to the liquidity providers, detailing their performance and ranking. The liquidity providers can use these reports to monitor and improve their trading strategies and results.

What are the new changes to the program?

Binance has upgraded the USD-Margined Futures Liquidity Provider Program, effective from 2023-06-05 00:00 (UTC). The upgrade introduces the following changes:

• The addition of one more qualification option to the program: Weekly USD-Margined Futures maker volume percentage (excluding maker volume on BTC and ETH pairs). This means that the liquidity providers can qualify for the program by meeting one out of the three requirements: Weekly USD-Margined Futures maker volume percentage, Weekly USD-Margined Futures maker volume percentage (excluding maker volume on BTC and ETH pairs), or Quoting ranking.
• The maker fee rebates have been increased for all tiers, ranging from -0.001% to -0.005%. This means that the liquidity providers can enjoy higher rewards for providing liquidity to the USD-Margined Futures market.
• The special fee settings for 13 selected USDT-Margined pairs have been removed. This means that the liquidity providers can enjoy the same maker fee rebates for all USDT-Margined pairs, regardless of the trading volume or volatility.

Why is this upgrade important?

The upgrade to the USD-Margined Futures Liquidity Provider Program is important for several reasons:

• It provides more options and flexibility to the liquidity providers, allowing them to qualify for the program with more pairs and criteria.
• It increases the incentives and rewards for the liquidity providers, motivating them to provide more liquidity and depth to the USD-Margined Futures market.
• It simplifies and standardizes the fee structure for the USDT-Margined pairs, making it easier for the liquidity providers to trade and manage their fees.

The upgrade is expected to enhance the liquidity and efficiency of the USD-Margined Futures market, benefiting both the liquidity providers and the traders. The USD-Margined Futures market is one of the most popular and innovative products that Binance offers, allowing traders to trade various cryptocurrencies with up to 125x leverage, using either USDT or BUSD as collateral.

Binance is committed to providing the best trading experience and service to its users, and will continue to improve and optimize its products and programs.