KEY TAKEAWAYS
- Binance launches the Altcoin LiquidityBoost Program to enhance altcoin liquidity on its platform.
- Liquidity providers can earn rebates up to 1 basis point by deepening order books for selected altcoin/USDT pairs.
- The program aims to create healthier altcoin markets with tighter spreads and lower slippage for traders.
- Set to start on June 9, 2025, the program offers competitive advantages for small to mid-sized liquidity providers.
Binance has introduced the Altcoin LiquidityBoost Program, marking the first spot-market initiative from a major exchange aimed at enhancing altcoin liquidity. This program is designed to reward liquidity providers with rebates of up to 1 basis point (bps) for deepening order books across selected altcoin/USDT pairs.
The initiative seeks to create healthier and more diverse altcoin markets, offering traders tighter spreads, lower slippage, and a broader range of choices. The program’s launch was announced here.
How the Altcoin LiquidityBoost Program Works
The Altcoin LiquidityBoost Program focuses on 18 specific altcoin/USDT trading pairs, including AUSDT, BABYUSDT, and CFXUSDT, among others. The program operates on a weekly cycle, consisting of a qualification period and a rebate period.
During the qualification period, eligible liquidity providers are ranked based on their share of total maker volume across the selected pairs. This ranking determines their rebate rate for the following week. In the subsequent rebate period, providers receive hourly rebates in USDT on their qualifying maker trades, with the rebate rate fixed based on the previous week’s performance.
Rebate tiers are structured to incentivize participation. Providers achieving at least a 0.5% maker volume share receive a rebate of -0.005% (0.5 bps), while those reaching 1.0% or more qualify for the top rebate of -0.010% (1 bps). Providers with less than 0.5% maker volume are not eligible for rebates.
Benefits for the Binance Ecosystem
The Altcoin LiquidityBoost Program is designed to benefit various stakeholders within the Binance ecosystem. For liquidity providers, it offers a focused opportunity to enhance altcoin markets without the need to cover BTC, ETH, or fiat markets. The program’s rebates provide a competitive edge for small to mid-sized providers.
Token projects benefit from deeper liquidity, which supports healthier and more stable markets, potentially leading to stronger token performance. Traders enjoy tighter spreads, reduced slippage, and a more diverse marketplace, enhancing their trading experience.
The program is set to commence on June 9, 2025, with the first rebates applied starting June 17, 2025. Interested participants must have a 30-day trading volume of at least 20 million USDT equivalent and can apply by contacting Binance through specified channels.
Why This Matters: Impact, Industry Trends & Expert Insights
Binance has launched the Altcoin LiquidityBoost Program, a new initiative to enhance altcoin liquidity by offering rebates to liquidity providers. This program targets small and medium-sized providers, aiming to deepen order books and improve trading conditions for selected altcoin/USDT pairs.
A Newswire report highlights a significant trend in altcoin liquidity programs, where major exchanges are focusing specifically on altcoins. This aligns with the launch of Binance’s program, which addresses a gap in the market by incentivizing liquidity providers to concentrate on altcoins rather than Bitcoin or large-cap tokens.
As per insights from The Block, Binance’s program is the first major exchange initiative focused exclusively on altcoin spot liquidity. This approach is expected to foster market diversity and improve trading conditions by offering targeted incentives to liquidity providers. This supports Binance’s goal of creating healthier and more diverse altcoin markets.
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