Liquidity-Based Market Making on Low Vol Markets

This strategy operates on dormant or low-volume markets (volume < 10k USDC daily) where spreads exceed 5-10% due to lack of market makers. The bot posts limit orders on both sides, typically buying at 35 and selling at 65 for binary events with clear directional bias. It adjusts prices based on on-chain sentiment signals (wallet activity, transaction flow) from the 6 wallets tracked in the report. Entry/exit are dynamic: it widens or narrows spreads based on volatility. Results show average 0.8% profit per filled fill, but carries inventory risk. Implementation requires a Polymarket API key and monitoring wallet addresses for insider moves.