Binance has introduced a new altcoin-focused spot liquidity program designed to support small and medium-sized liquidity providers. The initiative offers the highest rebates in the industry to boost market-making activities for lower-volume tokens.
Altcoin Liquidity Boost Program Overview
The Altcoin LiquidityBoost Program provides eligible market makers with rebates of up to 1 basis point (0.01%). Initially, the program covers 18 altcoin trading pairs, including:
- TON/USDT
- EOS/USDT
- FIL/USDT
- ONDO/USDT
Unlike traditional liquidity programs centered on Bitcoin, Ethereum, or fiat pairs, Binance's new program focuses exclusively on altcoins—a category often underserved by mainstream liquidity incentives.
Key Features
Two-tier rebate structure:
- 0.5 basis points for participants meeting a 0.5% order book share threshold.
- 1 basis point for those exceeding a 1% threshold.
Eligibility requirements:
- Minimum 30-day trading volume of $30 million across Binance’s spot, margin, or supported platforms.
- Application period: Opens September 17, with rebates starting October 30.
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Why This Program Matters
Catherine Chen, Head of VIP & Institutional Clients at Binance, stated:
"We aim to meet the needs of small and mid-sized liquidity providers who seek flexibility in altcoin market-making. This allows them to compete without being forced to support large-cap or fiat pairs."
Binance highlights that other major exchanges cap rebates at 0.8 basis points and require broad market-making, limiting small firms’ ability to specialize. In contrast, Binance’s model enables niche providers to concentrate liquidity where it’s needed most.
Supported Tokens
The program includes established and emerging tokens like:
- ICP/USDT
- CFX/USDT
- IOTX/USDT
- BABY/USDT
Binance will regularly review the list based on demand but hasn’t disclosed specific selection criteria.
Broader Context: Binance’s Liquidity Strategy
This initiative is part of Binance’s wider efforts to:
- Enhance altcoin liquidity.
- Reduce reliance on a few large market makers, especially amid volatile non-Bitcoin trading volumes.
Recent Developments
Binance co-founder Changpeng Zhao (CZ) recently proposed a dark pool perpetual swaps DEX to help large traders avoid:
- Front-running.
- Targeted liquidations.
In an X post, CZ questioned the logic of fully public order books on decentralized platforms:
"I’ve always been puzzled by the fact that everyone can see your orders in real-time on DEXs... The issue is worse on perpetual DEXs with liquidations."
This followed CZ’s $10 billion Hyperliquid long position being liquidated during a Bitcoin price crash, sparking debates about coordinated liquidations.
FAQ Section
1. Who is eligible for Binance’s Altcoin LiquidityBoost Program?
Small and mid-sized market makers with a 30-day trading volume of at least $30 million on Binance’s platforms.
2. What rebates are offered?
Up to 1 basis point (0.01%), depending on order book share thresholds.
3. Which altcoins are included?
Initially, 18 pairs like TON/USDT and FIL/USDT. The list will be updated periodically.
4. How does this compare to other exchanges?
Binance offers higher rebates (1bp vs. 0.8bp elsewhere) and lets providers specialize in altcoins.
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5. When does the program start?
Applications open September 17, with rebates beginning October 30.
6. Why focus on altcoins?
Altcoins often lack liquidity incentives, creating opportunities for smaller providers to fill gaps.