Kraken Launches Liquidity Provider Program With Volume-Based Rebate Tiers

WHY IT MATTERS

When you place a trade on a crypto exchange, someone else needs to be on the other side of that trade. Liquidity providers are the traders or firms that keep orders sitting on the exchange's order book so that when you want to buy or sell, there is always a match available. Think of them like vendors at a market who keep their stalls stocked — without them, you might not find what you need. Exchanges compete to attract these providers by offering them rebates, which are small payments for each trade they facilitate. Kraken's new program adjusts these rebates based on what percentage of the exchange's total trading a provider accounts for, rather than requiring them to hit a fixed dollar amount. This is relevant to everyday users because more liquidity generally means tighter price differences between buy and sell orders, which can reduce trading costs for everyone.