A trader has reportedly earned $50,000 in a week by exploiting latency in Polymarket's hourly market resolutions. The strategy involved using a bot to monitor real-time centralized exchange (CEX) feeds, identifying discrepancies between these feeds and Polymarket's slower oracle updates. By purchasing outcomes that had already occurred, the trader capitalized on the delay, earning $1 per share.
The bot demonstrated perfect accuracy, successfully executing 23 trades where Bitcoin's price dropped while Ethereum's rose within the same hour. The trader allocated positions ranging from $300 to $23,000, with Bitcoin receiving the largest share due to its liquidity. This approach relied on information arbitrage rather than price prediction, allowing the trader to hedge positions when uncertain and commit fully when market movements were clear.
Trader Exploits Oracle Latency for $50K Profit in One Week
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