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1. What's Happening?
- Binance, a major cryptocurrency exchange, is making changes to its "Fiat Liquidity Provider Program."
- Starting from June 25, 2024, they're adding the Japanese Yen (JPY) market to this program.
- They're also reviewing new markets to qualify for the program.
2. What's the Fiat Liquidity Provider Program?
- It's a program where certain users (liquidity providers) help maintain liquidity (smooth trading) for fiat-to-crypto pairs on Binance.
- These users get incentives (like fee rebates) for their participation.
3. How Does It Work?
- Users with high trading volumes (over 20 million USDT equivalent) can join.
- They need to prove their trading volume and show good liquidity strategies.
- If qualified, they get rebates on maker fees (fees for creating liquidity) in specific fiat markets.
4. What Are the Eligible Fiat Markets?
- TRY, EUR, BRL, ZAR, PLN, UAH, ARS, RON, MXN, CZK, COP, and now JPY.
- Users' weekly trading volume in these markets matters.
5. How Are Rebates Calculated?
- Binance looks at users' weekly spot maker volume (how much liquidity they provide) in each fiat market.
- Rebates are based on this volume and the overall market activity.
6. What Does It Mean for the Crypto Market?
- Adding JPY could attract more traders and boost liquidity.
- Rebates encourage liquidity providers, which can stabilize prices and reduce volatility.
- Overall, it might have a positive impact on the crypto market by making trading smoother.
Do your own research before investing.
What do you think about this. Will it help the market?