Polymarket reward farming
Automated Polymarket Reward Farming
ClydeScan Reward Farmer is an automated Polymarket liquidity reward farming bot. It continuously identifies eligible markets, provides two-sided liquidity, manages inventory and earns Polymarket liquidity rewards.
It is market-making software, not a prediction system: it takes no view on which way a market resolves. Rewards are paid by Polymarket to the account the bot runs on. Market making carries inventory risk, and reward income can be offset entirely by losses on the positions the bot picks up when its orders are filled. On our own account, over the last 15 days, it has been.
Reward Farmer is in private testing on our own capital. The waitlist opens the first accounts in signup order.
What ClydeScan does
ClydeScan Reward Farmer runs continuously against Polymarket's central limit order book. Concretely, it:
- identifies Polymarket markets with active liquidity rewards;
- analyses reward opportunities, ranking markets by reward pool size against existing maker competition;
- places qualifying two-sided liquidity at minimum size inside the rewarded spread;
- adjusts quotes as markets move, cancelling and re-placing orders that drift out of the reward band;
- manages inventory and exposure when an order is filled, working unmatched shares back toward neutral under a loss cap;
- monitors reward performance from Polymarket's own per-market reward ledger;
- tracks reward income against inventory and trading losses, and publishes both.
The last point is the one most reward-farming write-ups skip. Reward income is gross. It only becomes profit after the cost of unwinding filled inventory, so both numbers are measured and both are published on our live results page.
What Polymarket reward farming is
Polymarket reward farming is a market-making strategy in which liquidity providers place qualifying orders within Polymarket's designated reward spread and receive a share of the market's daily liquidity incentive pool. The income comes from the exchange's incentive programme rather than from correctly predicting an outcome.
Four terms get used interchangeably and shouldn't be:
- Polymarket liquidity rewards are the payouts themselves: a documented programme in which each eligible market has a daily pool, split nightly between makers whose resting orders scored during the UTC day.
- Market making is the underlying activity of quoting both sides of a market and standing ready to trade with whoever arrives.
- Reward farming is market making done primarily to capture those incentives. Order placement is optimised for reward score rather than for trading profit.
- Spread capture is the classical market-maker income: buying at the bid, selling at the ask, keeping the difference. Reward farming largely gives this up, quoting at minimum size where the reward score is best rather than where the spread is widest.
Which leaves the cost that defines the strategy. Inventory risk is what a maker holds after an order is filled, and adverse selection is the reason those fills tend to hurt: the counterparties most eager to trade against a resting order are the ones who know something about where the price is going. A reward farmer's real problem is not earning the reward. It is keeping the fills cheap enough that the reward survives them. Full walkthrough: what Polymarket reward farming is and how Polymarket liquidity rewards work.
How ClydeScan works
One cycle, start to finish. This is the actual sequence the software runs, not a simplified diagram:
- 1
Discover rewarded markets
A scanner pulls Polymarket's reward-eligible markets from the CLOB sampling-markets endpoint and keeps a live candidate list. Markets without a meaningful daily reward pool are dropped.
- 2
Evaluate opportunity and risk
Candidates are ranked by reward density: the size of the daily pool against how much maker competition is already quoting it. A separate admission gate checks the market is tradeable, that the midpoint sits inside the band where two-sided quotes score, and that a bounded exit exists for either side filling first.
- 3
Place eligible liquidity
For each admitted market the bot rests minimum-size orders on both YES and NO inside the reward spread, joining rather than crossing the book. Two-sided placement is what qualifies for the scoring multiplier, and it means no directional position is taken at entry.
- 4
Monitor market movement
Resting orders, book state and the account's on-chain positions are re-read every cycle. On-chain positions are treated as the source of truth for inventory rather than the bot's own record of what it thinks it owns.
- 5
Reprice or cancel quotes
When the midpoint moves and a resting price drifts outside the reward band, that order stops earning. It is cancelled and replaced in-band on the next cycle. Quotes that cannot be safely re-placed are simply left cancelled.
- 6
Track rewards and inventory P&L
Liquidity rewards are read from Polymarket's authenticated per-market reward ledger, and maker rebates are recorded alongside them. Realised P&L on the bot's own fills is tracked separately, so reward income is never mistaken for profit.
- 7
Reallocate capital
Capital sits behind a budget with per-market caps. Markets that stop clearing the reward-density floor lose their allocation to better ones; a kill switch cancels everything at once.
The component-level version of this, including the toxicity gate and the hedge state machine, is in how a Polymarket reward farming bot works.
Live results
Every figure below is read from the production account's ledgers through our public stats API, the same endpoint anyone else can query. Nothing here is a backtest.
$60.55
Liquidity rewards paid last night
$349.45
Liquidity rewards earned, last 15 days
11.0%
Gross reward yield on capital, 15 days
$3,184
Deployed capital at stake
−$479.35
Inventory and trading P&L, last 15 days
−$129.90
Net P&L, last 15 days (-4.1% on capital)
Snapshot from our account · Aug 17, 2026, 20:30 UTC. Measurement period: trailing 15 Polymarket payout days. Rewards are gross; net subtracts realised P&L on the bot's own fills. How these numbers are calculated.
Read that honestly: the reward programme pays reliably, and over this window the cost of unwinding filled inventory was larger than the rewards. Rewards covered 0.73× costs, where anything above 1.0 nets positive. Getting that ratio durably above 1.0 is the open engineering problem, and it is the number we report rather than the payout headline. The full daily series, including the days that lost money, is on the results page.
Risks
Inventory risk. A filled order leaves a real position. Until it is matched or exited it can move against the account, and unwinding it costs money.
Adverse selection. The traders most willing to take a resting order are often the better-informed side. Fills cluster around news, so they arrive exactly when they are most expensive.
Price movement. When the midpoint moves, quotes fall out of the rewarded band and stop scoring until they are re-placed. Fast-moving markets both earn less and fill more.
Fills are not optional. Quoting inside the reward spread means being genuinely tradeable. A strategy that avoided all fills would also avoid all rewards.
Changing reward programmes. Polymarket sets the pools, the spread bands and the scoring rules, and can change or end them. Rewards can also thin out simply because more makers arrive.
Capital requirements. Reward share scales with breadth, so results depend on how many markets can be quoted at once. Our own account runs a few thousand dollars; smaller accounts reach fewer markets.
No guaranteed profitability. Reward income is gross and can be fully offset by trading losses. Over our most recent measurement window it was. Past results do not predict future results.
What this is not
Frequently asked questions
What is a Polymarket reward farming bot?
A Polymarket reward farming bot is software that automatically places qualifying two-sided limit orders on Polymarket markets that pay liquidity rewards, keeps those orders inside the rewarded spread as prices move, and collects the resulting daily reward payouts. It is a market-making program rather than a prediction or betting system.
How do Polymarket liquidity rewards work?
Polymarket runs a documented liquidity rewards programme. Each eligible market has a daily reward pool. Orders resting within a defined maximum spread of the midpoint earn a score for every minute they stay there, weighted so that tighter quotes score more, with a multiplier for quoting both sides at qualifying size. At the end of the UTC day the pool is divided between makers in proportion to their score and paid in cash to their accounts.
How does ClydeScan earn Polymarket rewards?
ClydeScan Reward Farmer ranks reward-eligible markets by how large their reward pool is relative to existing maker competition, rests minimum-size orders on both sides inside the rewarded spread, reprices them when the midpoint moves, and hedges any inventory it picks up when an order is filled. The rewards are paid by Polymarket to the account the bot runs on.
Is Polymarket reward farming risk-free?
No. Resting orders get filled, and a filled order leaves real inventory that can lose money when it is unwound. Those losses can exceed the rewards earned over a given period, and on ClydeScan's own account they currently do. Reward farming reduces exposure to being right about outcomes; it does not remove market risk.
Is ClydeScan a market maker?
Functionally yes. ClydeScan Reward Farmer quotes both sides of prediction markets and profits from incentives paid for that liquidity rather than from predicting outcomes. It is an independent automated market maker built for Polymarket's reward programme, not a registered market maker or an official Polymarket product.
How often does Polymarket pay liquidity rewards?
Daily. Reward scoring runs over the UTC day and payouts settle once nightly at 00:00 UTC, covering the previous day's resting liquidity. ClydeScan's published nightly figures follow that same schedule.
Does ClydeScan guarantee profit?
No. ClydeScan publishes measured results from one live account, including negative periods, and makes no guarantee of profitability. Reward pools, competition and Polymarket's programme rules can all change.
What happens when one side of a market gets filled?
The bot then holds a real position rather than a balanced pair of quotes. In a binary market a matched YES and NO pair is worth $1 at resolution and carries no directional risk, so only the unmatched shares matter. The bot works those unmatched shares back toward neutral, either by acquiring the opposite side or by exiting, under a loss cap. If inventory passes a hard limit it stops quoting that market instead of adding to the position.
Run it on your own Polymarket account
Reward Farmer is designed to run on your account, with funds staying in your wallet. Join the waitlist for the first spots.