For the complete documentation index, see llms.txt. This page is also available as Markdown.

LP Rewards

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

Rewards Pool Calculator

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 β€” fewer LPs on this side, easier to earn rewards

πŸ”΄ Red

High competition β€” 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 (β–² = 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 β€” these are the lowest-competition LP opportunities right now

Step 2: Check the daily rewards and remaining pool β€” higher rewards + more remaining = better opportunity

Step 3: Consider the probability β€” providing liquidity near 99Β’ 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 β€” low competition, meaningful payout

Red on both sides

Crowded market β€” LP earnings will be split among many providers

High remaining pool

Earlier in the reward period β€” 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

LP rewards are separate from PolyHelper's own points & airdrop program. You can earn both simultaneously.


Markets Where This Feature Activates

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

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