Market Making#139

LP Concentration & Reward-Decay Rotation

Move your provided liquidity from market to market to capture the most reward incentives (tokens paid for market-making), since each market's reward rate shrinks as more money piles in. You exit a pool the moment the extra reward no longer covers the risk of trading against better-informed flow. The edge is treating those mining rewards like a yield that's richest right when a market is freshly incentivized.

What you need to run it

Real-time per-market reward-rate and TVL telemetry
Yield model netting emissions vs expected adverse selection
Automated multi-market LP add/remove with gas batching
Capital sized to move into freshly-incentivized listings fast

Where this applies

Markets on Polymarket where lp concentration & reward-decay rotation is the natural play:

Will Ethereum close above $5,000 on Dec 31, 2027?
Will Bitcoin be up at 4pm ET today?
Will the favorite reach the next Super Bowl?

Capabilities this demands

Significant capitalData ingestionCustom code / APIPatience

At a glance

CategoryMarket Making

Requirements4

CapabilitiesSignificant capital, Data ingestion, Custom code / API, 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.