New OKEx Market Maker Platform Launches An Incentive Program To Reduce Transaction Costs
OKEx Launches An Incentive Program For Market Makers To Reduce Transaction Costs On The Platform
One key issue in the cryptocurrency market is the low trading volumes due to the lack of liquidity and the market being relatively new. OKEx Exchange, one of the largest cryptocurrency exchanges in the world in daily traded volumes, announced the launch of an incentive program for market markers on the platform. The program is set to incentivize the margin traders using lower transaction costs and lower trading fees on the exchange.
The exchange is aiming to reduce the barriers to market making imposed by other exchanges by offering less strict requirements. To participate in the program, the users are required to acquire verification through Know Your Customer procedures and have trading assets exceeding 20 Bitcoin (BTC) in value in your account.
If the conditions are met, users can apply for the market making incentive program through email. OKEx team will offer a response to your request in five working days and if accepted you can start enjoying the benefits of the program. The market makers can also select their preference in asset classes to serve including spot, futures contracts or perpetual swaps.
OKEx offers a volume-based maker-taker fee schedule. The markers fee is zero across the three sections while the taker's fees are 0.03% for futures, 0.05% for perpetual swaps and 0.08% for spot and margin trading.
The new incentivized market makers are expected to improve the liquidity of the market given the reduced trading fees and transaction costs. According to the announcement, the OKEx program “incentivizes market makers to improve market quality, specifically in new and less-active cryptocurrencies.”
For cryptocurrency markets to thrive and gain widespread adoption, liquidity of the market will be key to ensure the trading environment is smooth and fluid. The execution of orders will be faster, fairer prices of the cryptocurrencies and overall market stability.
The program is aiming to improve the overall trading quality for its users while reducing the liquidity risks associated with a new market such as digital assets.
Once the market makers start facilitating trades on the platform, the OKEx team will rank them using performance metrics outlined in the announcement. The first will be the “reasonableness of the spread”, the second “contribution to the order book depth” and the final metric is the “market maker’s time on resting order”.
The exchange is currently developing the OKUSD, a stable coin tied to the US Dollar and traded on the exchange. The launch was announced during the partnership release of Prime Trust and OKEx exchange parent company, Star Xu.