How to farm LP rewards on @Polymarket? In this thread I’ll break...
d1namit@0xd1namit
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Nov 02, 2025
~2 min read
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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 🧵
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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
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
The Oracle@polymarketinfo
🔮 AUTOMATED MARKET MAKING ON POLYMARKET
How @defiance_cr created a profitable liquidity bot and why he decided to open-source it
poly.market/PvT3aNf
How @defiance_cr created a profitable liquidity bot and why he decided to open-source it
poly.market/PvT3aNf
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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:
d1namit@0xd1namit
After farming some LP rewards, I decided to leave a few limit orders, just in case someone dumps me shares at my price
Checked this morning and I actually got lucky
Some orders got filled and gave me like +0.5–2% profit
And one of them even did 2x (check the screenshot)
Ended up being a nice bonus on top of the LP rewards. Plus now it’s even easier to keep farming since I can place limit orders on both sides
@Polymarket literally lets you make money while you sleep
Planning to drop the thread in a few hours, turn on notifs so you don’t miss it
Checked this morning and I actually got lucky
Some orders got filled and gave me like +0.5–2% profit
And one of them even did 2x (check the screenshot)
Ended up being a nice bonus on top of the LP rewards. Plus now it’s even easier to keep farming since I can place limit orders on both sides
@Polymarket literally lets you make money while you sleep
Planning to drop the thread in a few hours, turn on notifs so you don’t miss it
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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
