Polymarket has achieved a $90 billion valuation following a $2 billion funding round, marking one of the largest financings in the crypto sector recently. The platform's growth in liquidity and user engagement has been accelerated by a strategic investment from ICE. This influx of capital has expanded arbitrage opportunities, with senior traders employing strategies like 'tail cleaning' and exploiting 'total probability < 100%' in multi-outcome markets for risk-free profits.
Automated bots are increasingly dominating these arbitrage strategies, while market makers benefit from platform incentives and liquidity provision. Additionally, Polymarket's 2028 U.S. election market offers a 4% annualized yield and extra rewards for liquidity providers, creating a complex income model for advanced participants.
Polymarket Hits $90 Billion Valuation, Boosting Arbitrage Opportunities
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