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Binance Futures Review, Month 7: Ready Player 1

2020-04-15

Back when we first launched Binance Futures in September 2019, our goal has always been to be the No. 1 futures exchange in crypto. Since Day 1, we’ve realized how much work it would entail and how much effort would be required to secure the pole position. We don’t have as large a team as other exchanges, but everyone here at Binance Futures works extremely hard, day and night, with no weekends. Everyone knows what it takes to be No.1.

We’ve made it to the top in our 7th month. We first achieved this by total volume, then by BTC volume. We are now the largest perpetual futures exchange and the largest BTC futures venue.

 

Looking back retroactively, beyond the hard work, there are three main reasons that contributed to the success of Binance Futures today.

1. Our low taker fee model

When we introduced our low taker fee model (without needing to offer negative maker fees), there were a lot of questions raised both internally and externally, as this was unique in the derivatives space. Too many exchanges were copying the first mover, without showcasing their own strengths. 

In fact, we’ve shown that our structure has exceeded expectations by creating a much healthier trading ecosystem. Because of our taker fees, which are the lowest in the industry, we attracted relatively heavier taker volumes, which helped makers fill their desired orders. Too many other exchanges offer negative maker fees, where most orders are just computerized market makers competing for best bid and ask with extremely limited taker interest during periods of non-volatility.  This helped differentiate our product from competitors, and this steadily caused our market leadership in BTC price discovery.

2. Product innovations

Innovation has always been a cornerstone of Binance Futures. We have consistently rolled out new features that have improved accessibility to our markets and further developed our ecosystem. We are the first exchange to offer 125x leverage and the first of its kind to launch cross-collateral and smart liquidation mechanisms. These features have gained tremendous popularity amongst our users.

3. The most altcoin pairs

To date, Binance Futures has launched 24 perpetual futures contracts including BTC, BNB, and other contracts. As of the writing of this update, Binance Futures houses half of the top 10 most liquid altcoin contracts, many of which are also the most traded pairs amongst all futures exchanges. This is in large part due to our industry-best matching engine which allows us to keep adding more pairs without hurting system performance.

The hard work never stops at Binance Futures. This month alone, we launched the following:

  • Trading tournament – form teams to win up to more than $1,000,000 in prizes

  • Options – our innovative feature to fulfill your short term market views

  • New landing website and trading interface – easier to use and cleaner design

  • BTC cross collateral – use BTC to trade Binance Futures

  • New affiliate bonus program – more rewards to monetize your influence

  • New brokers bonus program – more incentives to be Binance Futures brokers

Strive to be more than number one, strive to be the best of the best.

Ready player one.

- AG, Binance Futures VP