Bloomberg: After the $6.3 billion crypto theft, Binance offers higher rebates to select market makers to maintain liquidity.

According to Bloomberg, after Binance suffered a record $630 million hack, the crypto exchange has increased incentives for some market makers trading on its platform to boost trading activity. People familiar with the matter said that shortly after last week’s security breach, the firm reached out to smaller trading firms, offering higher rebates in spot and futures markets. Per its website, Binance categorizes market makers into different tiers based on the liquidity they provide. Firms contributing a larger share of trading volume qualify for higher tiers, which typically come with larger rebates to lower their transaction costs. Under the one-week promotion, Tiers 2 and 3 market makers will receive the same rebate rates as Tier 4 participants, the platform’s highest tier, the sources added. The changes are designed to give smaller liquidity providers stronger financial incentives to quote on the exchange and maintain deeper order books, the sources noted. A Binance spokesperson said the exchange’s latest post-breach moves help calm the market, adding: “As we prioritize clear communication, we took immediate steps to preserve our core strength: liquidity.” Market makers play a critical role by continuously providing bid and ask quotes; the liquidity they supply allows other investors to trade without triggering sharp price swings. According to Talos, within 24 hours of the hack, Bitcoin order book depth on Binance dropped roughly 30%, with depth within a 1% price range falling from $45 million to $32 million. Market depth measures how much trading volume can be absorbed without causing significant price volatility.