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One of the worldâs largest crypto exchanges says its new program incentivizes market traders by offering zero fees.
A crypto exchange has unveiled its new market maker program, with incentives for participants in the form of lower trading fees and reduced transaction costs.
OKEx â which, according to CoinMarketCap, is the worldâs biggest exchange by trading volume at the time of writing â says the program is open to users who have completed the necessary Know Your Customer (KYC) verification procedures and have total assets exceeding 20 bitcoin or the equivalent in their account. The company says these requirements are âless strictâ than those offered by its rivals.
Applications for its market maker program are only being accepted by email, and OKEx says suitable candidates will be notified if they are successful within five working days. Market makers have been split into three categories and applicants can express a preference: spot, futures contracts or perpetual swaps.
Zero maker fees are being offered across all three categories. Taker fees are 0.03% for futures, 0.05% for perpetual swaps and 0.08% for spot and margin trading.
Perpetual swaps are a type of crypto derivative product that was launched on OKEx last December. They enable users to speculate on the future value of bitcoin against the United States dollar, and âpositions can be held indefinitelyâ because they reportedly have no expiration.
âAn exclusive serviceâ
OKEx says market makers receive a âone-to-one exclusive service on its platform.â
The company says its new program is innovative because it âincentivizes market makers to improve market quality, specifically in new and less-active cryptocurrencies.â
OKEx is available hereThis is mainly achieved through enhancing liquidity, and OKEx says higher levels of liquidity help to âbring about fairer prices, market stability and quick exchangesâ â ultimately resulting in a âfluid trading environmentâ for all.
Market makers are given performance metrics to abide by, with OKEx measuring them against three criteria. The first gauges the âreasonableness of the spread,â while the second measures their contribution to order book depth. The third assesses the âmarket makerâs time on resting order.â
OKEx says it has received a âlarge amount of community feedback and questionsâ since it made the changes to its pricing mechanism.
New developments
OKEx has been busy in recent months, with the exchangeâs parent company, Star Xu, recently partnering with Prime Trust so that the firm can launch its own compliant stablecoin. It has been provisionally named OKUSD, which suggests that it is likely to be pegged to the U.S. dollar.
Meanwhile, toward the end of March, the exchange confirmed it is developing its own blockchain and decentralized exchange. The blockchain, which is now believed to be in the final development stage, has initially been dubbed âOKChain,â and a testnet is set to debut in June.
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