polymarket-market-maker_skill

Overview

This skill automates market making for Polymarket prediction markets, providing continuous liquidity with configurable spreads and position limits. Each API call charges 0.001 USDT. It focuses on automated order placement, position hedging, and fee capture to generate steady market-making returns.

How this skill works

The skill monitors selected Polymarket markets and places bilateral buy and sell orders based on volatility and your configured spread. It tracks open positions in real time and executes hedges when limits or risk thresholds are reached. Built-in controls enforce max position sizes and automated close conditions while logging P&L and fees for performance tracking.

When to use it

• When you want automated liquidity provision on Polymarket markets
• To capture trading fees by maintaining continuous bid/ask quotes
• When you need systematic hedging and position limits for risk control
• For running a low-touch market making strategy with configurable parameters
• When you can supply a wallet private key and initial capital (recommended >= 100 USDT)

Best practices

• Start with conservative spreads and small maxPosition to learn market behavior
• Supply a dedicated wallet and never expose the private key outside secure storage
• Monitor logs and P&L regularly to adjust spread, hedge rules, and capital allocation
• Use risk limits (maxPosition, stop-loss conditions) to prevent runaway exposure
• Test settings on low-volume markets before scaling to larger positions

Example use cases

• Provide liquidity on a new BTC price prediction market to earn early trading fees
• Run a continuous market maker with a 2% spread and auto-hedging to limit inventory risk
• Operate multiple market maker instances across several correlated markets to capture cross-market spreads
• Backtest and tune spread and hedging parameters using recorded P&L before live deployment
• Automatically withdraw or rebalance after cumulative fee thresholds are reached