Polymarket: What is it and how it works
polymarket what is it: Polymarket is a decentralized prediction-market exchange on Polygon where users buy binary and multi-outcome shares that pay $1 if they resolve YES. Markets trade in pUSD on a Central Limit Order Book and resolve via the UMA optimistic oracle. Traders and bots look for intra-market price inefficiencies; PolyArb is a purpose-built arbitrage bot that runs live, non-custodial, with 40ms latency and guaranteed minimum edges.
What Polymarket actually is
Polymarket is a decentralized prediction-market exchange built on Polygon. Users trade outcome shares (ERC-1155 via the Gnosis Conditional Token Framework) using pUSD; each share pays $1 if its outcome resolves YES and $0 otherwise. Trading is on a Central Limit Order Book (CLOB) with limit and FAK market orders. Settlement and resolution use the UMA optimistic oracle, and Polymarket sponsors transaction gas via a relayer so end users trade gas-free.
How trading works on Polymarket
Binary markets have YES and NO prices that should sum to $1 at fair value; multi-outcome markets’ prices sum to $1 across all outcomes. You can split a complete set of outcomes for $1 of pUSD, then buy or sell individual legs, merge back, and redeem after resolution. Order books expose best bids and asks and a midpoint; tick size is usually $0.01 and tightens near extremes. Maker fees are zero; taker fees vary by category.
Why traders use Polymarket
Traders use Polymarket for event-driven exposure and short-lived pricing inefficiencies. Active markets and the CLOB format let automated strategies capture intra-market arbitrage when legs misprice relative to $1. Arbitrage opportunities are time-sensitive and can vanish in seconds. There are also explicit risks: UMA disputes or delayed resolution, slippage or partial fills, fee changes, and smart-contract risks—never assume any edge is unconditional.
How PolyArb fits in
PolyArb is an intramarket arbitrage service built for Polymarket traders and bots. For $99/month you get a non-custodial bot with ~40ms latency (vs ~800ms for free bots), Telegram and Discord alerts, and a stated $7.62 minimum guaranteed edge per trade. PolyArb routes orders through the CLOB, monitors Gamma, Data, and CLOB surfaces, and automates split/merge flows. It is a tool to capture short-lived intra-market and combinatorial arbitrage — but users must still manage settlement timing and market risks.
Start capturing Polymarket arbitrage today
Try PolyArb for $99/month to get a non-custodial bot, 40ms latency, Telegram + Discord alerts, and a $7.62 minimum guaranteed edge per trade.
FAQ
- Is Polymarket a centralized exchange?
- No. Polymarket is decentralized: markets use the Gnosis Conditional Token Framework for outcome tokens, trade on a CLOB on Polygon, and resolve via the UMA optimistic oracle.
- What does pUSD mean on Polymarket?
- pUSD is Polymarket’s wrapped USDC used for trading and CTF operations. All trades, splits, merges, and redemptions are denominated in pUSD.
- Can I arbitrage on Polymarket safely?
- You can attempt intra-market arbitrage when summed best-ask legs are below $1, but safety is contextual. Risks include resolution disputes, slippage, partial fills, fee changes, and smart-contract risk. PolyArb automates flows and reduces latency but does not eliminate these risks.
- How does PolyArb deliver alerts and execution?
- PolyArb provides low-latency execution and sends alerts via Telegram and Discord. It runs non-custodial flows, interacts with the CLOB, and automates split/merge/redeem sequences to capture intra-market edges.