Major cryptocurrency exchange Binance revealed in a blog entry published on September 30 that it is releasing a market maker program.
As indicated by the announcement, clients whose monthly trading volumes surpass 1,000 Bitcoins (BTC)—or can arrive at such volumes—and who also have quality market making strategies can quickly join the program. Binance clarifies that the point of the activity is to carry greater liquidity to the trade.
The organization says that the program is restricted to the trading platform’s spot markets on a “market maker pair list” that will be updated periodically.
Each market maker will be given a score dependent on their performance over different markets, contingent upon which the trade will compute their fees.
In particular, the score will consider maker volumes, bid/offer spread, order duration, total order size, weight adjustment on specific pairs. Binance will expect candidates to demonstrate their exchanging volumes — through techniques including giving information from another exchange or by conversing with their key account manager.
As previously reported in April, rival crypto exchange OKEx additionally declared its market maker program, with incentives for eligible users in the form of lower trading costs and reduced transaction costs.