Binance Futures has quickly turned into a major cornerstone of the Binance exchange. We launched our first AMA with Binance Futures Director Aaron Gong to address the public’s questions about it. Here are some of the highlights.
In just less than two months, Binance Futures has grown into one of the biggest exchanges for Bitcoin futures, attracting billions of dollars of daily trading volume and changing the competitive landscape when it comes to Bitcoin derivatives.
At the helm of Binance’s relentless march into Bitcoin futures is Aaron Gong, the director of Binance Futures. Aaron, or AG, is an OG in the traditional futures industry, with key roles in CME, as well as in institutions such as a Dutch market-making firm and a New York-based futures hedge fund. He brings extensive expertise in derivatives to drive Binance Futures to the top.
In today’s AMA, AG updated the Binance community regarding the monumental progress that Binance Futures has made, as well as future plans for the platform. Here are some of the notable things he brought up during the AMA.
Binance Futures Origins
We’ve been monitoring crypto futures markets for a long time and often heard demands from our existing spot clients. These clients often raised unsatisfactory experience on other exchanges due to trading system overloads, counter-intuitive product design, and poor risk management systems.
As such it presented an opportunity for Binance to improve the entire crypto-based futures trading experience by fixing these issues. We are working hard to deliver the best user experience while enhancing our safety features that serve to protect users, which are our main focus.
Firstly, we have the fastest and most stable matching engine in the crypto industry to date. The matching engine is the long term thing for an exchange which is similar to the base of the building; if we don’t get it right, it’s hard to change it in the future.
As such we spent a tremendous amount of effort to build and test our matching engine, as a result, it can handle 100,000 orders per second and its average latency is at 5ms. It has laid the foundation to further grow our user base. Even during highly volatile periods in the last couple of weeks, our system tested positively with no platform issues or delays of any kind.
Secondly, we also have a very liquid spot exchange. Many futures traders are also using our industry-leading spot market for hedging or conducting arbitrage trades. We have seen increased activities from these traders transferring in and out from spot to futures during volatile periods. The liquid and ease to use spot market as well as the simple process to transfer capital between spot and futures, provides our customers with the most efficient manner to trade in both markets.
Thirdly, we have the lowest taker fees in the market by a large margin during our 50% discount period, which is available for one and a half months. The taker fee rate starts at 0.02%, and drops to 0.01% for higher-tier clients; this is typically less than half of what many other exchanges charge. Our taker fees can be as much as 7.5 times cheaper than most exchanges.
On #2 Ranking on Bitcoin Volumes + Near 3 Billion USD Daily Volume
We are very impressed by the growth speed in such a short span of time. This gives us stronger confidence about the validation of product and market fit, and we believe the current momentum will continue growing and expect to see further gains in the coming months.
Thank you to all of our users and the community for your support. Continue to let us know your feedback on the product and user experience — we will do everything we can to deliver the product you want.
What does your roadmap for 2019-20 look like? Name some important milestones you. @MdRejwan13
This is a fast-changing industry and we normally plan for the next 3 months.
Before the end of this year, in terms of the product road map, we will largely focus on three major features which are: IOS app, more pairs and cross collateral.
Our goal is to grow the entire ecosystem of the crypto futures market and provide users with better trading experience and service. So, we will stay focused on product iterations and the developments of new features.
Our new market making program just started yesterday and we’ve got dozens of participants started making markets that have translated into tighter spreads and thicker depths on order book. Clients would find our liquidity will be continuously improved.
We also launched sub-accounts features yesterday to address demands from API clients mostly. We will also launch more trading activities and programs in the following weeks.
Since we launched, we have added 3-4 new features per week based on community requests. In the coming months, we will continue rolling out new major features that address community feedback, including several developments to improve the user experience.
Will you allow Bitcoin to be used as collateral for a trade instead of just USDT as is currently? @CryptoLi0n
Once our cross collateral is launched by later this year, BTC will be accepted as a deposit to trade futures.
When majors and mid-cap coin leverage trading? @HenneWhatElse
This is something we’re still considering. No timeline yet, but we appreciate the feedback and will take this back to the team to add to the pipeline.