@0xd1namit: How to farm LP rewards on @Pol...
@0xd1namit
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Nov 02, 2025
1
How to farm LP rewards on @Polymarket?
In this thread I’ll break down how the reward formulas actually work, how to farm more efficiently and how i personally do it
I won’t go over the basic stuff like what LP farming even is, that’s been covered a hundred times already, no point repeating it
Let’s get into it 🧵
In this thread I’ll break down how the reward formulas actually work, how to farm more efficiently and how i personally do it
I won’t go over the basic stuff like what LP farming even is, that’s been covered a hundred times already, no point repeating it
Let’s get into it 🧵
2
When i first started deep diving into the Polymarket ecosystem, I came across an interview by @polymarketinfo
In that one, @defiance_cr talked about building an auto market-making bot and making good money during the 2024 elections
I legit consider him the godfather of LP farming. Definitely read that interview, you’ll 100% find some gold in there
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In that one, @defiance_cr talked about building an auto market-making bot and making good money during the 2024 elections
I legit consider him the godfather of LP farming. Definitely read that interview, you’ll 100% find some gold in there
3
Let’s talk theory
I’d split all reward markets into two categories:
1. Mid competition, big reward (like the New York City Mayoral Election). Good for bigger capital and solid %APY
2. Zero competition markets with small 5–50 USDC rewards. Here you can meet the requirements and grab the entire pool (or big part) with just a small amount of money
I’d split all reward markets into two categories:
1. Mid competition, big reward (like the New York City Mayoral Election). Good for bigger capital and solid %APY
2. Zero competition markets with small 5–50 USDC rewards. Here you can meet the requirements and grab the entire pool (or big part) with just a small amount of money
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How to farm?
Every market with rewards has a “requirements” panel
I’m sure you’ve had that moment when you placed a limit order and didn’t earn any rewards
That’s because when the price moves outside the 0.1–0.9 range, you gotta place orders on both sides to earn rewards
If you’re inside that range, then you can farm with just one order and still get rewards
Every market with rewards has a “requirements” panel
I’m sure you’ve had that moment when you placed a limit order and didn’t earn any rewards
That’s because when the price moves outside the 0.1–0.9 range, you gotta place orders on both sides to earn rewards
If you’re inside that range, then you can farm with just one order and still get rewards
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Equations from docs
If you’ve checked Polymarket’s docs about LP rewards, you probably saw the equations, got scared and closed the tab. Let’s simplify:
Equation 1: the closer your limit order is to the midpoint, the higher the reward
Equation 2: calculates the contribution of each user (based on distance from midpoint + liquidity size)
Equation 3: same as 2, but for the opposite side
If you’ve checked Polymarket’s docs about LP rewards, you probably saw the equations, got scared and closed the tab. Let’s simplify:
Equation 1: the closer your limit order is to the midpoint, the higher the reward
Equation 2: calculates the contribution of each user (based on distance from midpoint + liquidity size)
Equation 3: same as 2, but for the opposite side
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Equation 4a: within [0.10, 0.90] range, one-sided orders still earn, but less. Seems like around 3x less (since c = 3 in docs)
Equation 4b: outside that range, only two-sided orders earn rewards
Equation 5: calculates each trader’s share relative to everyone else
Equation 6: your total score accumulates over time based on how long you’ve been providing liquidity
Equation 7: your reward = your score from eq6 / total score * reward pool
Equation 4b: outside that range, only two-sided orders earn rewards
Equation 5: calculates each trader’s share relative to everyone else
Equation 6: your total score accumulates over time based on how long you’ve been providing liquidity
Equation 7: your reward = your score from eq6 / total score * reward pool
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How to earn more
I use the “competition” filter and target low/zero competition markets
If the spread’s too big, I’ll leave a limit order there. If it gets filled, I can farm from both sides more efficiently later
Sometimes this also gives an extra profit boost, like I showed in my previous post:
I use the “competition” filter and target low/zero competition markets
If the spread’s too big, I’ll leave a limit order there. If it gets filled, I can farm from both sides more efficiently later
Sometimes this also gives an extra profit boost, like I showed in my previous post:
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Links:
Reward tab on Polymarket: polymarket.com/rewards?via=d1…
Docs with equations: docs.polymarket.com/developers/rew…
If you wanna support me, sign up with my link: polymarket.com/?via=d1namit
Reward tab on Polymarket: polymarket.com/rewards?via=d1…
Docs with equations: docs.polymarket.com/developers/rew…
If you wanna support me, sign up with my link: polymarket.com/?via=d1namit