Insightful|Oct 28, 2025 22:09
Earning ~100+ from liquidity rewards on Polymarket puts you in the top 6% of all wallets
One big oversight I realized after posting "The Polymarket Farming Bible" in hindsight was the how, the strategy, and why you should LP/ be providing liquidity
So quick guide on that now:
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Why should you LP ?
Possible airdrop criteria or multiplier imo (entirely speculation) because:
- inherently strong anti sybil filter (ex. Min 5 earned from LP rewards)
- Liquidity is the "lifeblood" of Polymarket, can't have trades or volume of size with no liquidity = "high quality/ valuable" user interaction
- Anybody (or bots) can wash volume but most wont be willing to risk their liquidity near midpoint (more risk, more monitoring required)
- Polymarket selectively assigns liquidity rewards for certain markets, its not random or accidental
While Polymarket technically has passed over 3.1M wallets
~289k of these wallets have only 1 or more active days traded
~52k total wallets have ever provided liquidity
Earning ~650+ puts you in the top 1k wallets (top 2%)
Earning ~100+ = top 6%
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How to LP
- Click profile icon in topic right --> click 'Rewards"
It will then reveal all the markets that are currently being incentivized with rewards
Providing liquidity = basically placing limit orders around the midpoint (within the max spread of that specific markets)
I'll usually filter for things based on reward amount or "competition level" and then pick from there
"Will MetaMask launch a token in 2025?" is a good example here of something I would LP
At 22% yes I think this is "overvalued"
Highlighting cursor over "rewards" shows you the LP reward terms
(light blue highlighting in the orderbook section
The clock symbol mean my current bids are eligible for LP rewards
More liquidity closer to the current price = more rewards during volume
You'll see bots / automated account put like 15-30 to farm LP rewards on lower volume markets
Ideally we use/look for markets with more /deeper liquidity so we can "pool" our bids with others
so our limit order wont get hit as quickly = more time earning LP rewards
Ex. On this MM market liquidity per share price is in the thousands of $ not hundreds
Final Notes
I would only LP with shares I'm comfortable holding
Keep in mind LP risk - your essentially buying shares at a certain price when LPing, so shares price spike unexpectedly in "wrong" direction = $ loss
To min-max harder use an alert tool like @PolyAlertHub (not sponsored) to know when your bids are hit, if your quick enough you can use this to LP on the other side of the order (farm more volume and fees)
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