Binance upgrades USD-Margined Futures Liquidity Provider Program

Binance has begun scaling the USDC-margined futures liquidity provider program after providing the USDC-margined futures contract. This will take effect at the start of the next year. Users will need to meet certain requirements to connect with the program.

USD-M futures contracts contain linear futures contracts where the settlement is done in USDT and USDC once active. To commemorate the delivery of USDC-margined futures contracts, eligible liquidity suppliers will benefit from 0.008% maker fee discounts on USDC-margined futures contracts for a short period of time. All eligible liquidity providers will be eligible for standard maker fee rebates on USDC-margined futures contracts beginning January 16, 2024.

Anyone can apply for this program as long as they have traded at least $20,000,000 worth of spot or $100,000,000 worth of futures on the Binance exchange or another platform in the last 30 days. Eligible candidates will receive a three-week reprieve and be offered a Tier 1 maker fee discount on USDT-margined futures contracts.

There is a weekly USD-M futures maker volume requirement to qualify for the weekly USD-M futures maker volume percentage over and above the full Binance USD-M futures maker volume percentage. By the end of every week, the USD-M futures maker volume percentage will be considered, with maker fee discounts received by the deserving users whose maker volume stands at 0.20%.  

In the case of being eligible for weekly USD-M futures maker volume, keeping out BTC and ETH pairs over and above the full Binance USD-M futures maker volume, the weekly maker volume percentage needs to be sent percent. At the end of every week, the maker volume percentage will be looked at and should reach 0.20%. 

Every liquidity supplier’s weekly maker score will serve as their ranking in terms of quoting. Maker fee discounts will be received by the users who are in the top 40% among liquidity suppliers. 

The program’s priority is to offer liquidity to the Binance USD-M futures market. There will be a periodic study of the program to understand its impact and potential.