The largest cryptocurrency exchange in the world in terms of volume, Binance, has revised its fee program in efforts to reward market makers for increasing futures liquidity CoinDesk reports.

In an official press statement released on Monday, Binance revealed that market makers for the Futures program will be awarded a negative fee for various trading pairs. The statement describes a market maker as a user who increases liquidity through purchasing and selling limit orders where the limit prices being either higher or lower than the prevailing market price. In other words, a market maker is a user who removes liquidity from the market via filling a previously placed.

Crypto exchanges in most instances, come up with different techniques to increase liquidity within their platforms by providing makers reduced fees in comparison to the ones given to takers when they are filling an order.

Binance did not reveal the details of the negative fee program. However, for a user to be part of the program, they must have more than 1,000 BTC trading volume for the last 30 days on the Binance platform. The announcement also indicates that one must have ‘quality market maker strategies’. In addition, Binance says it will approve proposals that are backed with proof of such trading volumes in different exchange platforms.

The exchange also stated that a performance review will be enforced routinely and will be based on various aspects like market making time, order duration, bid/offer spread as well as the total order size.

The new strategy by Binance can be seen as a plan to deal with intense competition in the derivatives market. In the recent past, both Intercontinental Exchange’s Bakkt as well as Chicago Mercantile Exchange (CME) rolled out Bitcoin options having offered futures contracts.

Since its introduction in September 2019, Binance Futures has witnessed a rapid growth with January’s futures volume increasing by 85% after $56 billion was traded on the platform’s perpetual contract markets.

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