Binance to launch altcoin-only spot liquidity program targeted at smaller market makers

Crypto exchange giant Binance has announced its first altcoin-only spot liquidity program, designed to meet the demand for greater market diversity.

The "Altcoin LiquidityBoost Program" aims to offer the most rewarding altcoin market-making rebates in the industry, to attract small and medium-sized liquidity providers who want to focus on altcoin market-making to complement the exchange's  existing liquidity programs , Binance stated in a shared press release with The Block.

Liquidity programs incentivize deeper crypto markets by rewarding market makers with competitive fees and rebates. By consistently placing buy and sell orders, liquidity providers strive to improve trading efficiency, reduce slippage, and support more stable markets for all participants. Binance's new program offers rebates of up to 1 basis point, or 0.01%, to liquidity providers for selected altcoin trading pairs.

The crypto exchange argues that most existing liquidity programs favor large players by requiring market-making across all trading pairs — many of which are dominated by bitcoin and other major cryptocurrencies — or by focusing solely on crypto-fiat pairs. It says this puts smaller and mid-sized liquidity providers at a disadvantage, limiting their ability to compete and specialize.

To address the gap, Binance claims it is the first major crypto exchange to offer a liquidity program focused solely on altcoins, with existing spot maker programs on major exchanges capping rebates at 0.8 bps compared to its up to 1 bps and not allowing participants to specialize in selected altcoins, unlike its new initiative.

"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," Head of Binance VIP & Institutional Catherine Chen said. "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."

More specifically, the program offers two tiers, with rebates of 0.5 bps and 1 bps for providers meeting maker volume thresholds of 0.5% and 1%, respectively. Program qualification begins on June 9, with rebates commencing on June 17, the exchange said.

The Altcoin LiquidityBoost Program will launch with support for 18 altcoins, with Binance regularly reviewing the list based on market demand. Those initial pairs are INIT/USDT, EOS/USDT, HYPER/USDT, PARTI/USDT, ICP/USDT, KERNEL/USDT, CFX/USDT, W/USDT, KMNO/USDT, IOTX/USDT, ONDO/USDT, TON/USDT, FIL/USDT, WCT/USDT, BABY/USDT, SXT/USDT, SYRUP/USDT, and STO/USDT, a Binance spokesperson confirmed to The Block, without clarifying the selection criteria.

Liquidity providers with "quality liquidity providing strategies" and 30-day trading volumes over $20 million across Binance Spot, Margin, or other platforms can apply.