Major cryptocurrency exchange Binance has revealed it’s adjusting its fee structure on Binance Futures to reward market makers with negative fees for adding liquidity to the platform
According to an announcement Binance published, its revised Binance futures Market Maker program will see market makers who qualify receive a negative fee on selected trading pairs. Market makers are users who add liquidity to the market by placing orders below and above the current market price, effectively adding depth to the order book.
On the other hand, a market taker is a user who takes liquidity from the market by filling already placed trades. Exchanges often boost their liquidity by attracting market makers with lower fees. Binance’s offer is to seemingly reward them with negative fees to improve liquidity on its binance Futures platform.
Details on the negative fees aren’t yet clear, as Binance’s announcement only addresses the requirement market makers will have to meet to be eligible to receive the rewards. To join the program, users will need to have a 30-day trading volume of over 1,000 BTC ($9.1 million) on Binance. The announcement reads: Read More...