Binance Announces Market Maker Program to Bring More Liquidity to the Platform


Submitted by Anonymous (not verified) on Mon, 09/30/2019 - 13:25

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Binance Announces Market Maker Program to Bring More Liquidity to the Platform

Binance, one of the fastest-growing and most popular cryptocurrency exchanges in the world, is making efforts to bring more liquidity to its platform. With this aim, the company has introduced its Market Maker program that welcomes traders whose 30-day trading volumes exceed 1,000 BTC (or can achieve volumes of 1,000 BTC).

Market makers or liquidity providers are individuals or companies that provide purchase and sell options for investors in order to keep the financial market volatile. Market makers operate under a given exchange’s bylaws and profit from both sides through a commission or a bid-ask spread (the difference between buy and sell quote of an asset).

According to Binance, market makers participating in the exchange’s new program can enjoy trading fee reductions, as well as higher API limits. Market Makers will be given a composite score based on their performance across the various pairs, and fees will be assigned based on the score rankings.

As the company has explained, the composite score will be calculated based on such indicators as maker volumes, bid/offer spread, total order size, order duration, and weight adjustment on specific pairs. Moreover, fees will be assigned based on the score rankings.

Currently, market making is limited to only spot trading and only on a limited pair. The program will be periodically updated with new pairs.

Binance Removing Trading Pairs

Another news from the leading crypto exchange: about 30 trading pairs are being removed from Banince’s listings. It is notable that some of them include tokens launched on Binance Launchpad Initial Exchange Offering (IEO) platform.

According to the announcement, the full list of trading pairs being removed is as follows:

“ANKR/PAX, ANKR/TUSD, ANKR/USDC, BCPT/PAX, BCPT/TUSD, BCPT/USDC, BTT/BTC, DENT/BTC, DOGE/PAX, DOGE/USDC, ERD/PAX, ERD/USDC, FTM/PAX, FTM/TUSD, FUEL/ETH, GTO/PAX, GTO/TUSD, GTO/USDC, LUN/ETH, NCASH/BNB, NPXS/BTC, ONE/PAX, ONE/TUSD, PHB/PAX, PHB/USDC, TFUEL/PAX, TFUEL/TUSD, TFUEL/USDC, WAVES/PAX, WIN/BTC.”

As the company has explained, the initiative aims at ‘improve liquidity and user trading experience’, the choice of trading pairs was determined by the requests of different project teams.

The announcement comes soon after Binance launched in the US. Binance US added support for 13 inaugural trading pairs across the cryptocurrencies of Bitcoin (BTC), Bitcoin cash (BCH), Binance Coin (BNB), Ethereum (ETH), Litecoin (LTC), XRP, and the Tether stablecoin (USDT). By doing so, Binance hopes to enlarge its influence on the world’s largest economy and become one of its leading cryptocurrency trading locations.

Recently, Binance also announced the launch of its staking platform that enables users to earn dividends or interest on their digital assets just for depositing them on the platform that initially allows the staking of such cryptos as NEO (NEO/GAS), Ontology (ONT/ONG), Vechain (VET/VTHO), Stellar (XLM), Komodo (KMD), Algorand (ALGO), Qtum (QTUM) and Stratis (STRAT).

Binance Announces Market Maker Program to Bring More Liquidity to the Platform