Market Making#065

Layered Iceberg Quoting

Instead of showing one big resting order, you split it into a ladder of small clips and quietly refill them as they fill, so only a little size is visible at the best price at any moment. This hides how much you really want to trade. The edge is that informed traders can't read your true depth, so you suffer fewer bad fills than if you displayed full size on a thin book.

What you need to run it

Order ladder manager with auto-replenish on partial fills
Low-latency cancel/replace pipeline
Per-level size and spacing model
Fill-rate and toxicity telemetry

Where this applies

Markets on Polymarket where layered iceberg quoting is the natural play:

Will the Fed cut rates by 50bp or more at the September 2026 FOMC?
Will Ethereum exceed $6k by Sept 30, 2026?
Will a frontier AI lab release a new flagship model before Oct 2026?

Capabilities this demands

Custom code / APILow latencyModel / quantRisk management

At a glance

CategoryMarket Making

Requirements4

CapabilitiesCustom code / API, Low latency, Model / quant, Risk management

VenuePolymarket (CLOB, Polygon)

Build it

Related market making strategies

This is documentation, not advice. Poly Research & Robotics publishes how these strategies work because the method should be checkable — not as a recommendation to trade them. See the full strategy database (147 strategies) or the data resources directory.