How an exchange improved market depth through market making

Take Binance as an example—it enhanced market depth via market making:

• Engaging Professional Market Makers: Binance partners with top firms like Wintermute and GSR to provide continuous buy/sell quotes.
• Tightening Spreads: Market makers narrow bid-ask spreads through dense order placement, boosting order book depth.
• High-Frequency Trading Support: Algorithms and HFT ensure sufficient depth for large trades, minimizing slippage.
• Incentive Programs: Fee rebates encourage market maker participation, enhancing liquidity.

As a result, trading pairs like BTC/USDT on Binance exhibit greater market depth, attracting more traders and driving volume growth.