Bloomberg: After $6.3 billion stolen, Binance offers higher rebates to some market makers to maintain liquidity.

BlockBeats news, November 3 - According to Bloomberg, after Binance suffered a record $6.3 billion hack, it increased incentives for some market makers trading on its platform to boost trading activity.

According to people familiar with the matter, shortly after the security breach last week, the company contacted smaller trading firms to offer higher rebates in spot and futures markets.

According to information on its website, Binance primarily categorizes market makers into different tiers based on the liquidity they provide. Companies providing a larger share of trading volume are eligible for higher tiers, typically receiving larger rebates, thereby reducing their trading costs.

The people familiar with the matter said that during this one-week promotional campaign, so-called Level 2 and Level 3 market makers will receive the same rebate rates as Level 4 participants (the platform's highest-tier group). These changes are intended to provide smaller liquidity providers with higher financial incentives to quote on the trading platform and maintain deeper order books, the people added.

A Binance spokesperson said that Binance's latest move after the security breach helped reassure the market, adding: "Just as we prioritize clear communication, we immediately took measures to maintain our core strength: liquidity."

Market makers play a central role by continuously providing bid and ask quotes, and the liquidity they provide enables other investors to trade without causing drastic price fluctuations. According to Talos data, within 24 hours after the hack, Bitcoin order book depth on Binance dropped by about 30%, with depth within 1% of the price falling from $45 million to $32 million. Market depth is a metric measuring how much trading can be absorbed without causing drastic price fluctuations.