The global blockchain ecosystem Binance, which is trusted by more than 270 million people all over the globe, has just launched a new spot Liquidity Program called the “Altcoin LiquidityBoost Program.” This program will concentrate on altcoins in order to satisfy the demand from small and medium-sized liquidity providers that wish

• Additionally, the exchange intends to recruit additional diversified liquidity providers to complement the exchange’s current liquidity programs.
• The purpose of liquidity programs is to ensure that the cryptocurrency market has sufficient liquidity and depth, as well as to give liquidity providers with incentives.

The global blockchain ecosystem Binance, which is trusted by more than 270 million people all over the globe, has just launched a new spot Liquidity Program called the “Altcoin LiquidityBoost Program.” This program will concentrate on altcoins in order to satisfy the demand from small and medium-sized liquidity providers that wish to concentrate on altcoin market-making. Binance intends to provide the most lucrative altcoin market-making rebates in the industry with the new liquidity program. Additionally, the exchange intends to recruit additional diversified liquidity providers to complement the exchange’s current liquidity programs, which will further enhance the exchange’s unprecedented liquidity and competitive spread.

The purpose of liquidity programs is to ensure that the cryptocurrency market has sufficient liquidity and depth, as well as to give liquidity providers with incentives in the form of competitive fee structures and rebates. The posting of buy and sell orders on a continuous basis is one of the most significant roles that liquidity providers play in guaranteeing the continuous liquidity and stability of the market. Consequently, this helps to guarantee that users are able to execute their transactions more quickly, more often, and with less slippage.

At the moment, the current liquidity programs on major exchanges either demand liquidity providers to market-make across all pairings on the exchange, with the volume weightage skewed toward bitcoin and other high cap tokens, or they are focused on trading pairs between cryptocurrencies and fiat currencies. This indicates that smaller and medium-sized liquidity providers are unable to successfully compete with bigger participants in the market.

The new liquidity program that Binance has introduced is the first of its kind to be given by a major cryptocurrency exchange. It is designed to cater to altcoins, and if a liquidity provider meets the volume criteria for certain altcoins, they are eligible to get rebates of up to one basis point. To put this into perspective, the rebates that are currently offered by spot maker programs on major exchanges do not surpass 0.8 basis points (bps), and they require participants to provide liquidity for the exchange’s whole spectrum of spot trading pairs. Participants that have strategies that provide excellent liquidity and whose 30-day trading volume on Binance Spot and Margin or other platforms surpasses 20,000,000 USDT equivalent are encouraged to submit an application.

The Altcoin LiquidityBoost Program will supplement the spot Liquidity Programs that are already in place at the main cryptocurrency exchange in order to provide participants with additional options:

• The Binance Spot Maker Program encompasses both spot trading and margin trading. Participants that participate in the program are responsible for paying no maker fee and have the opportunity to earn rebates by qualifying for higher performance levels depending on their volume. At the moment, the Spot Market Program provides investors with a maximum refund of 0.8 basis points.
• Binance Fiat Maker Program is designed to cover certain fiat markets that are listed on Binance.com. Participants who participate in the program will be eligible to earn maker rebates in a particular fiat currency. A maximum rebate of one basis point is now available via the Fiat Maker Program.
• In order to qualify for the program’s Tier 1 and 2 respectively, liquidity providers are required to meet a maker volume percentage of 0.5% and 1%. Additionally, they will enjoy a Maker Fee Rebate Rate of 0.5 bps for Tier 1 and 1 bps for Tier 2. The New Binance Altcoin LiquidityBoost Program is focused on specific altcoins and has two tiers.

Beginning on June 10, 2025, participants will be eligible to participate in this new Liquidity Program, and beginning on June 18, 2025, it will be possible to get refunds on maker fees.

Catherine Chen, Head of Binance VIP & Institutional commented:

“We are responding to demand from market participants, particularly small and medium-sized liquidity providers, who want the choice to focus on market-making for altcoins. Our new altcoin-focused liquidity program helps liquidity providers of all levels compete in the marketplace without the pressure to market-make across bitcoin and other large cap crypto.”

She added:

“Under our new Liquidity Program, a liquidity provider will enjoy rebates of 1 bps if they meet the volume requirements of selected altcoins. As the industry leader, Binance is taking the lead to give liquidity providers of all sizes as well as token projects more support to grow — users benefit the most when there is more diversity and healthier liquidity.”

The Altcoin LiquidityBoost Program will initially support 18 altcoins, and Binance will continually evaluate the altcoins that are eligible for assistance in order to meet the demands of the market.

In the event that they are interested, liquidity providers may contact Binance VIP at mmprogram@binance.com with a record of their trading volume. Alternatively, they can get in touch with their Binance VIP key account coverage team, if applicable. Learn more about the spot Liquidity Programs offered by Binance by clicking here.