Polymarket's Strategy for Stable Market Making

News Flash 2025-12-09 16:40

Polymarket has developed a dual-layer strategy to ensure stable cash flow in prediction markets, focusing on low-volatility environments. The first layer involves machine-driven rationality, selecting markets with minimal price fluctuations over the past 14 days and operating within a 0.10 to 0.90 price range to avoid extreme volatility. The second layer employs cognitive safeguards, avoiding markets with high political or legal risks, ambiguous rules, or those dominated by insider trading. The strategy emphasizes earning through official rewards rather than market direction, targeting pools with daily rewards exceeding 1.00 USDC. Liquidity is crucial, with a market depth requirement of over $10,000 to provide a buffer against sudden risks. Polymarket avoids high-volume 'whale' markets, instead focusing on retail-driven environments with settlement periods between 15 and 90 days. This approach aims to capitalize on patience and time, selecting markets that are quiet, lucrative, and clear, with a focus on long-term stability rather than short-term gains.

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This content is for informational purposes only and does not constitute investment advice.

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