Binance, the largest exchange in the world in terms of daily trading volume of cryptocurrencies, declared the plan to update its Fiat Liquidity Provider Program on December 27, as the company consistently strives toward delivering a better trading experience for all users with higher liquidity in mind.
— Binance (@binance) December 16, 2021
The exchange provided details about the update via a blog post, saying:
“This program is limited to the specified fiat markets on Binance.com, with a set of selected fiat pairs where liquidity providers will be scored based on the maker volume.
The corresponding score of each selected fiat pair differs as the liquidity of each fiat market and fiat pair varies.
Maker fee rebate eligibility of liquidity providers is subject to their trading performance on the selected fiat pairs across spot and margin trades on a weekly basis.”
The company further noted that based on the new performance review mechanism, liquidity providers would be reviewed weekly from 27th December 2021 00:00 (UTC), while maker fee rebates would be distributed based on the previous week’s results from 3rd January, 2022.
Moreover, the new performance review mechanism will take several factors into consideration, including:
- Liquidity provider’s maker volume percentage on the selected fiat pairs on the exchange;
- Cumulative score that the liquidity provider achieves in the specified fiat markets.