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.

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:
The amount of liquidity provided
How close to the current price their orders are placed
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:
π’ Green
Low competition β fewer LPs on this side, easier to earn rewards
π΄ 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):
Current probability %
Polymarket's current price for this outcome
% change
Recent movement (β² = 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 40β60% probability carry more adverse selection risk
Step 4: Place limit orders in Polymarket's order book at your chosen bracket
Understanding Competition & Risk
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
Higher rewards weight
Lower rewards weight
More adverse selection risk
Less exposure to informed traders
Orders fill more often
Orders fill less often
Markets Where This Feature Activates
Available on all Polymarket markets that have an active LP rewards program.
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