> For the complete documentation index, see [llms.txt](https://polyhelper.gitbook.io/polyhelper-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://polyhelper.gitbook.io/polyhelper-docs/analytics-tools/rewards-calculator.md).

# LP Rewards

The **LP Rewards** panel helps liquidity providers on Polymarket evaluate LP rewards opportunities across all market outcome brackets — including **competition level indicators** that show at a glance where the edge is.

![Rewards Pool Calculator](https://raw.githubusercontent.com/polymarkethelper/gitbook/main/.gitbook/assets/rewards-calculator.png)

***

## Background: Polymarket LP Rewards

Polymarket runs a **liquidity provider (LP) rewards program** that incentivizes traders to place limit orders. LPs earn a share of a daily rewards pool proportional to:

1. The amount of liquidity provided
2. How close to the current price their orders are placed
3. How long their orders remain active

***

## What the Panel Shows

### Competition Level Indicators

Each market outcome bracket is color-coded to show how competitive the LP environment is:

| Color        | Meaning                                                               |
| ------------ | --------------------------------------------------------------------- |
| 🟢 **Green** | Low competition — fewer LPs on this side, easier to earn rewards      |
| 🔴 **Red**   | High competition — crowded side, harder to capture a meaningful share |

This color system lets you instantly spot where the best LP opportunities are without manually calculating pool share.

### Per-Bracket Data

For each outcome bracket (e.g., >$800M, >$1B, >$1.5B):

| Field                     | Description                                                  |
| ------------------------- | ------------------------------------------------------------ |
| **Current probability %** | Polymarket's current price for this outcome                  |
| **% change**              | Recent movement (▲ = price rising)                           |
| **Daily rewards**         | Total rewards pool allocated per day (e.g., $800/day)        |
| **Sponsored**             | Additional sponsored rewards if applicable                   |
| **Remaining**             | How much of the reward pool is still unclaimed (\~$422 left) |
| **Buy Yes / Buy No**      | Current bid prices with competition color indicator          |

***

## How to Use It

**Step 1:** Look for **green brackets** — these are the lowest-competition LP opportunities right now

**Step 2:** Check the **daily rewards** and **remaining pool** — higher rewards + more remaining = better opportunity

**Step 3:** Consider the **probability** — providing liquidity near 99¢ on a near-certain outcome is low risk but also low edge; brackets with 40–60% probability carry more adverse selection risk

**Step 4:** Place limit orders in Polymarket's order book at your chosen bracket

***

## Understanding Competition & Risk

| Situation                      | What It Means                                                   |
| ------------------------------ | --------------------------------------------------------------- |
| Green YES + high daily rewards | Best LP opportunity — low competition, meaningful payout        |
| Red on both sides              | Crowded market — LP earnings will be split among many providers |
| High remaining pool            | Earlier in the reward period — more to earn                     |
| Near-zero remaining            | Pool almost exhausted for this period                           |

***

## Trade-offs for LP Providers

| Tighter to market price     | Further from market price         |
| --------------------------- | --------------------------------- |
| Higher rewards weight       | Lower rewards weight              |
| More adverse selection risk | Less exposure to informed traders |
| Orders fill more often      | Orders fill less often            |

{% hint style="info" %}
LP rewards are separate from PolyHelper's own [points & airdrop program](/polyhelper-docs/rewards-program/program.md). You can earn both simultaneously.
{% endhint %}

***

## Markets Where This Feature Activates

Available on all Polymarket markets that have an active LP rewards program.


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