Binance Temporarily Raises Rebates for Small and Medium Market Makers After Hack

November 3 - According to Bloomberg, Binance is stabilizing some liquidity supply by increasing rebates after suffering a hack of approximately $6.3 billion last week. Sources familiar with the matter said the exchange has introduced a temporary incentive for some small and medium-sized market makers lasting about a week, raising the rebate standards for Tier 2 and Tier 3 market makers to the highest Tier 4 level, covering spot and futures-related trading, aimed at encouraging them to quote more actively and maintain order book depth.

The report noted that market microstructure came under pressure after the attack. Talos data showed that within 24 hours after the incident, Binance's order book depth within a 1% price range around Bitcoin fell from about $45 million to about $32 million, a decline of about 30%. Against this backdrop, the short-term increase in incentives for small and medium-sized market makers is seen as an emergency arrangement to ease the contraction in depth and stabilize the trading experience; after the measures end, whether rebates return to their original tiers will still depend on the subsequent recovery in liquidity.