One of the key innovations that helps Polymarket function smoothly is its Liquidity Rewards Program a system designed to incentivize users to add liquidity to markets by placing competitive limit orders. If you’ve ever wondered how to earn passive rewards while trading, this is a core feature worth understanding.
💡 What Is the Liquidity Rewards Program?
Polymarket’s Liquidity Rewards Program allows users to earn money by placing limit orders that improve the depth and balance of the market. In essence, the more helpful your orders are to the health of a market—by being well priced and sizable, the more you earn.
This system is essential to the platform because more liquidity means tighter spreads, faster trades, and a better experience for all users. Instead of relying only on large traders or market makers, Polymarket encourages community driven liquidity by rewarding everyday users who keep markets active.
📊 How Do Rewards Work?
Your rewards are calculated daily and depend on:
- The proximity of your orders to the market midpoint: The closer your buy or sell orders are to the average market price, the more they are rewarded.
- The size of your orders: Larger limit orders generally earn more rewards, assuming they’re competitively placed.
- The competitiveness of your position: Being closer to the top of the order book increases your share of the daily reward pool.
In simple terms:
👉 More useful = more earnings.
You don’t even need your order to fill, you just need it to be placed within the eligible range to start earning.
🔍 How to View Rewards in the Order Book
On Polymarket, you can check if a market has active liquidity rewards by opening the Order Book view.
Here’s what to look for:
- A “Rewards” label appears in markets offering liquidity incentives.
- Hovering over the label shows details like:
- Total reward pool for the day
- Maximum eligible spread (in cents)
- Minimum order size to qualify
- Blue-highlighted lines on the order book indicate the range within which orders are eligible to earn rewards.
For example, if the max spread is 3¢, any order placed within 3¢ of the midpoint qualifies. If the market is very low-priced (e.g. <$0.10), you may need to have orders on both sides to be eligible.
⏱️ How to Know If You’re Earning
When your orders are actively earning rewards, you’ll see a blue highlight around the clock icon next to your order. This indicates that the system is tracking your position and allocating your share of rewards accordingly.
You can also monitor your daily earnings on Polymarket’s Rewards page, which shows:
- Your current earnings
- Which markets are offering rewards
- The amount of rewards available per market
💰 Why It Matters
This program creates a win-win scenario:
- Traders benefit from a more liquid and responsive market.
- Liquidity providers earn consistent, passive income for supporting the ecosystem.
- The platform becomes more stable, efficient, and scalable.
Especially in markets with low liquidity, rewards can be substantial—making this a strategic opportunity for traders who want to earn without constantly buying or selling.
✅ Final Tips
- Use tight, well sized limit orders close to the midpoint.
- Spread your orders across markets with active rewards.
- Check the “Rewards” tab daily for updates and opportunities.
⚠️ Caution
Earning through Liquidity Rewards is certainly possible, but it’s not fully automatic. It requires a solid understanding of the market, careful strategy, and consistent attention to how conditions are evolving.
Key things to keep in mind:
- Understand the market’s resolution rules
- Avoid leaving active orders during critical moments, such as when a market is about to resolve or is affected by important news
- Track the midpoint and overall liquidity to ensure your orders remain competitive and are not unnecessarily exposed
Many inexperienced users make the mistake of leaving orders in the book during impulsive or high volatility periods, such as right before a market resolves. In these cases, not only might you miss out on rewards, but you may also see your orders filled at a loss.
In short: If you help keep Polymarket’s markets healthy, you get paid for it.
Note: This is not financial advice. It is simply one possible strategy that users may consider when participating in Polymarket’s liquidity rewards program.
For more Information about Rewards visit Polymarket website: Polymarket reward
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