HomeVideos

Kalshi 15 min markets, arbitrage, bonding on Polymarket (guy bets 7mil to make 0,2%)

Now Playing

Kalshi 15 min markets, arbitrage, bonding on Polymarket (guy bets 7mil to make 0,2%)

Transcript

252 segments

0:00

So a few days ago we had a news here on

0:02

X from Kelshi that has now launched an

0:05

up or down market. So we can trade now

0:07

the 15minute crypto markets across

0:10

Bitcoin, Ethereum and Solana similar to

0:11

how we have it on Poly Market. So this

0:14

actually creates opportunities to some

0:16

kind of an arbitrage. You know, if you

0:18

have uh the same markets on Kali and

0:21

Poly Market, and if there's like a

0:23

mispricing between the outcomes, you

0:25

could potentially do some arbitrageing

0:27

here and uh make money.

0:30

There's another guy here that talks

0:31

about something similar where you can do

0:33

market arbitrage. So again between poly

0:35

market and calcium you find you know uh

0:39

markets that are similar or identical in

0:42

nature and then you do both sides on the

0:45

platforms when the total price is less

0:48

than a dollar. So for example as you say

0:50

in a perfect efficient world yes price

0:52

plus no price equals $1. But then there

0:56

will be cases just like we discussed on

0:58

a 15-minute market that the yes on

1:00

platform A and no on platform B is

1:02

actually less than a dollar. If we

1:05

monitor both 15-minute markets on, you

1:08

know, Poly markets and KI, we could

1:10

potentially do some arbitrage here when

1:12

the total price of yes no tokens is is

1:15

less than a dollar. So that's very

1:17

interesting and it's going to be

1:18

interesting to see how how this unfolds.

1:20

So there's another thing that a lot of

1:22

people they are talking about and that's

1:23

the bond market on uh on poly market. So

1:27

the bonds markets is basically where you

1:30

you actually take these very likely

1:33

events and it can look a little bit

1:35

risky like for example if you see here

1:36

he bets a 100,000 to win 101,000. So,

1:40

you're actually putting a lot of money

1:41

on the line to win. H not a lot, but

1:46

there's actually a a good, you know,

1:48

idea behind it. Like, if you can

1:50

consistently do one or two% on sure

1:53

trades, you know, every single day, you

1:55

can actually make a lot of money. So,

1:57

for example, in in his example, he have

2:00

almost 700 APY. And uh you know, that's

2:04

that's actually a lot of money in a in a

2:06

long term. But I think there's nuances

2:09

to it. We really have to understand well

2:10

what is actually going on here because

2:13

this guy here um a western he have a

2:18

good explanation of of how this actually

2:22

works. So most people think polyark just

2:26

about predicting outcomes and gambling

2:27

wrong. The real consistent edge is

2:29

mechanics and and one of the cleanest

2:31

place is bonding resolved market. So,

2:33

this I think is the key word here, a

2:35

resolved market

2:37

because I've seen other people talk

2:39

about taking a sure like these 99% bets

2:42

before the market is resolved. And if

2:45

you do that, well, then you have these

2:47

off chance that it's actually going to

2:50

resolve in the opposite end. So you have

2:51

these I don't know if you can call it

2:53

black swan events but most of the time

2:56

yeah you're going to make you know the

2:58

1% half a percent maybe then you only

3:00

take one really really bad bet to

3:03

completely wipe out the the entire

3:06

portfolio

3:08

but what he is talking about is actually

3:10

bonding on the resolved markets so if

3:13

you understand how the yuma um oracle

3:17

works you can consistently extract ee

3:18

and make money off those who don't

3:20

understand resolution ions. So how the

3:23

resolution works each poly market is

3:25

finalized based on a oracle resolution

3:28

where um Oracle verify the proposal for

3:31

the markets to finalize

3:34

the flow and outcome is proposed.

3:37

Challenge window is open. Somebody can

3:38

dispute the proposed outcome by paying a

3:41

bond.

3:43

UMA tokens hold a vote on the truth the

3:45

determined outcome and outcome can be

3:47

challenged 2x. If two challenges are

3:50

unsuccessful, the market is fully

3:52

resolved. So how it actually works? The

3:54

bonding alpha when the market is in

3:56

review, it is being reviewed by the

3:59

Oracle before fully completing as yes or

4:01

no. Clicking in review will take you to

4:05

the Oracle page. So here we can see the

4:07

example it's 100% but yes it's 99.9.

4:13

So I I suppose the idea here is you

4:16

basically collect you know one 0.1%

4:21

but buying yes and it also depends on if

4:24

you have the you you need to have

4:27

liquidity right to be able to buy. Yes.

4:30

So it's for the people that don't want

4:31

to wait for it to be resolved. The alpha

4:33

is that a market can be resolved on um

4:36

while remaining in review on poly

4:38

market. The gap in time of umema

4:42

resolving and poly market resolving is

4:44

where the money is made. Once has

4:47

finalized an outcome, the probability of

4:50

reversal is zero but price often lags

4:53

because users don't understand your main

4:55

mechanics. Users want liquidity

4:58

immediately. They don't want to wait for

4:59

full resolution. people wait for poly

5:02

market to resolve and opposed

5:04

people wait for poly market to resolve

5:06

as opposed to um so I mean yeah that

5:09

makes sense if there's a lack between

5:11

the oracle and then poly market actually

5:14

resolving the the the event then you

5:16

know for sure that yeah it is resolved

5:17

we're just waiting for poly market to

5:19

sort of you know market as resolved and

5:22

then there's potentially a you know an

5:24

opportunity to to scrape you know very

5:27

little money but you know from from from

5:30

this seems like it's like 100%. So it

5:32

for sure it's interesting and it's uh

5:34

you know it's it's something you

5:35

probably don't want to do manually. You

5:37

definitely want to create like an

5:38

automated bot that does this

5:40

automatically. So how profitable is this

5:43

if the reward rewards are so small? It's

5:45

one of the most profitable strategies on

5:47

polar market in my opinion in his

5:49

opinion as 0.1 return on $1,000 is $1

5:54

per bond at 99.9.

5:57

Imagine do this once a day. That's $365

6:01

per year using $1,000. So that's a 36.5%

6:06

APY,

6:07

which is yeah, that's, you know, that's

6:09

that's re that's very good. You know, if

6:12

you can do this consistently and with no

6:14

risk. So like we really have to

6:16

emphasize here that we need to make sure

6:18

that it can never resolve to the

6:21

opposite end. So we need to make sure

6:22

that it is resolved. just waiting for

6:24

like Poly Market to basically, you know,

6:27

click a button or something like that.

6:29

And another thing about it is, yeah,

6:30

then you also need a lot of capital

6:32

because, yeah, $1,000, yep, you can do a

6:35

decent amount per per year, but, you

6:38

know, it's not going to grow

6:40

exponentially as we see other traders

6:41

do. You probably need a lot of money to

6:43

to really capitalize on this. Here's

6:45

another example of a guy that does uh he

6:47

did two bonds yesterday at 0.1% profit

6:50

each. It gives me 0.2% 2% in one day. So

6:53

for this guy, 73% APR here. He won

6:58

$14,000

6:59

with a bet of $13,986.

7:03

So that's, you know, that's pretty crazy

7:05

to think about. He bet almost $14,000

7:08

to win $14.

7:11

So 14 divided by 13

7:16

986.

7:20

So yeah, that is 0.1%.

7:24

I mean, it sounds crazy and it kind of

7:26

looks crazy that you put so much on the

7:29

line

7:32

and you probably did do not want to do

7:35

this if it's not 100% sure. Like even if

7:39

there's the slightest chance this not

7:42

working, it's not worth it because just

7:45

one of these bets that resolves to, you

7:48

know, the opposite of what you, you

7:51

know, bought, it's going to wipe out

7:53

your entire

7:55

returns for several years. And here's

7:59

another one with Micro Strategy. He bet

8:02

actually the same amount and it won

8:04

14,000. And here's another one. bro

8:07

dropped 7 million to win 15,000. So, I

8:12

mean, I don't know if this is uh is if

8:14

this is photoshopped or not. I mean, I

8:16

didn't really verify if this is true or

8:18

not, but the there's this guy here, poor

8:21

sub. He did well Melania say Korea doing

8:25

AI talk on Friday

8:28

and he bet

8:31

7,196,870

8:39

to win 0.21%.

8:41

And so here he has here we have his

8:44

profile

8:49

and he actually have active

8:53

uh position right now. So he did will

8:56

trump Trump say million a billion

8:58

trillion 10 times doing CNBC interview.

9:01

So he put a million dollars and he made

9:06

$1,000 so far.

9:09

So he bought at 99.8 8 and currently

9:12

it's 99.9

9:14

and then closed.

9:16

Yeah, we have it. We have the one here

9:21

um

9:22

where he bet 7 million. He did

9:26

6 million

9:29

and 100,000 4 million

9:33

2 million 1 million 2 million one and a

9:36

half. That's I mean that's just crazy,

9:37

right? So he does like a thousand here

9:39

and there in in profits which is pretty

9:43

mind-boggling.

9:46

And if we do his profit loss,

9:49

he have made 113,000

9:53

all time. He started in October, didn't

9:57

really make much.

9:59

So he's basically just scraping it. This

10:01

looks like it's manual for sure. It's

10:02

manual trades, I suppose. betting, you

10:06

know, a million a time is crazy. And

10:08

done um 63

10:12

predictions currently have a position

10:14

value 1.6 million. So that is

10:18

bonding in a nutshell. Yeah. So that was

10:21

all for now and if you haven't joined

10:23

already, please go ahead and join our

10:25

discord community, Poly Traders. We

10:27

already have all more than 700 members

10:30

in this Discord community and it's

10:32

growing every day. A lot of people are

10:34

joining and we have a lot of active

10:36

members and discussing everything from

10:38

bot development, strategy, prediction,

10:41

crypto, and bite coding. And I mean,

10:43

we're just growing this Discord and

10:44

building it out as we go. So, um, you

10:47

can, uh, join the Discord today. And

10:49

I've made sure to leave a invite down in

10:51

the description below. So, until next

10:53

time, have a good one and see you.

10:54

Bye-bye.

Interactive Summary

Kelshi recently launched 15-minute crypto markets on X, creating arbitrage opportunities with Poly Market due to potential mispricing. The video also details a "bonding alpha" strategy on Poly Market. This strategy involves identifying markets that have been definitively resolved by the UMA Oracle but have not yet updated on Poly Market. By capitalizing on this time lag and the zero probability of reversal after UMA resolution, users can make small, near-risk-free profits. While individual profits are minimal (e.g., 0.1%), consistent application, often via automation and significant capital, can lead to substantial annual percentage yields. The strategy's success hinges entirely on ensuring the market is 100% resolved by UMA, as even a slight chance of an opposite outcome can be catastrophic.

Suggested questions

5 ready-made prompts