Multi-strategy market making system providing continuous liquidity across Polymarket prediction markets.
Our Market Maker is a fully automated liquidity provision system built specifically for Polymarket's Central Limit Order Book (CLOB). It continuously places and manages buy and sell orders across multiple prediction markets simultaneously, earning the bid-ask spread while improving market quality for all participants.
The system is composed of three primary modules working in concert:
Calculates fair value for each outcome using a combination of order flow analysis, cross-market signals, and proprietary probability models. The engine re-prices every 100ms and adjusts spreads dynamically based on volatility, inventory, and event proximity.
Maintains a continuous presence on both sides of the order book. Handles order placement, cancellation, and amendment via the Polymarket CLOB API. Implements rate limiting and retry logic to ensure reliable execution under load.
Monitors net exposure across all markets in real-time. Enforces position limits per market and aggregate, triggers automatic hedging when inventory drifts, and activates circuit breakers if daily P&L thresholds are hit.
Since deployment, the Market Maker has processed over $40M in notional volume across political, crypto, and sports prediction markets. It maintains an average spread of 1-3 cents while keeping net exposure within defined risk limits at all times.