Market Making#108

Liquidity-Mining Reward-Adjusted Quoting

Quote both buy and sell sides in markets covered by Polymarket's liquidity-provider reward program, placing orders to maximize your reward score (which weights tight spreads, depth, and uptime) so the subsidy income alone beats the cost of being picked off, even when your raw spread is roughly break-even. The edge is treating the reward formula itself as the profit source and shaping inventory to stay inside the reward-eligible bands.

What you need to run it

  • Reverse-engineered LP reward scoring formula + eligible-market list
  • Quoting bot tracking reward bands and uptime
  • Capital across many rewarded books simultaneously
  • Adverse-selection vs subsidy PnL attribution model

Where this applies

Markets on Polymarket where liquidity-mining reward-adjusted quoting is the natural play:

  • Will the Fed cut rates at the next FOMC meeting?
  • Will Bitcoin close above $120k on December 31, 2026?
  • Will the named team win tonight's NBA game?

Capabilities this demands

Custom code / APISignificant capitalModel / quantPatience

At a glance

CategoryMarket Making
Requirements4
CapabilitiesCustom code / API, Significant capital, Model / quant, Patience
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.
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