- Binance’s new program offers discounts from up to 1 base point to attract altcoin-focused liquidity providers and increase the market depth.
- The initiative is aimed at small and medium -sized market makers and facilitates access by focusing on selected old coins instead of all trading pairs.
Binance starts a new liquidity initiative that aims at the Altcoin segment of its Spothandelsmarkt. The program called “Altcoin LiquidityBoost Program” offers qualified liquidity providers discounts of up to 1 base point (BPS) in the form of maker fees.
The initiative, which is launched in mid-June 2025, is intended to increase the depth and efficiency of Altcoin trading couples by attracting more participants, in particular small and medium-sized market makers, which were often excluded from traditional discount programs that were dominated by large-capital tokens.
The step of the platform to cut a liquidity program especially on old coins is a large deviation from the industry standards. In the past, most of the liquidity programs of the big stock exchanges have concentrated on Bitcoin, Ethereum and Fiat-based trading pairs.
The marketmakers generally demand that they provide liquidity for a whole range of spot trading pairs, which made it difficult for smaller participants to compete on an equal footing. Binance’s new offer could change this dynamic.
As part of the Altcoin LiquidityBoost program, the participants will be based on their market-make performance in selected Altcoin pairs rated. Two levels were introduced: Level 1 requires a maker volume content of 0.5 % and grants a discount of 0.5 basis points, while level 2 requires a maker volume of 1 % and offers the full discount of 1 base point.
According to the stock exchange, the discounts will begin on June 18, whereby the qualification data will be pursued from June 10th. 18 Altcoins are supported at the start of the program. Binance said that it will update the permissible old coins over time on the basis of market demand and liquidity conditions.
Access requirements and comparison with existing programs
In order to participate, Market-Maker must have a 30-day trading volume of at least 20 million USD-equivalent on the spot or margin platforms of Binance or a similar volume on other stock exchanges. In addition, the quality of liquidity is checked, including the contribution to the order book and the maintenance of the spreads, to ensure that the program rewards an effective and consistent market behavior.
This initiative differs from Binance’s existing Spot Maker Program, which covers all trading pairs and offers up to 0.8 BPS discounts. It also differs from the Fiat Maker program, which only grants discounts in certain Fiat markets. By focusing on old coins, the new program reduces the scope of participation, while at the same time it can increase accessibility for smaller liquidity providers.
Strategic shift to close market gaps
The program is a response to the increasing demand for liquidity on the Altcoin markets, the depth of which often leaves behind the large tokens. By structuring the rewards around selected old coins, Binance goes into an obvious market insefficiency, thin order books and larger spreads, which usually lead to poor trade execution for the users. Since smaller liquidity providers can now focus on certain assets, the program could promote a larger market balance.
Catherine Chen, the head of the VIP and institutional department of Binance, said in a public explanation that the initiative should offer participants more flexibility. Catherine Chen said the initiative was reacting to the feedback from marketmakers who want to concentrate on old coins instead of covering all trading pairs.
The introduction of this program could have an impact on how other exchanges design their liquidity offers. If it is successful, the Altcoin LiquidityBoost Program could encourage competitors to rethink their flat -rate approach for discounts and volume -based incentives.
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