Kalshi 15 min markets, arbitrage, bonding on Polymarket (guy bets 7mil to make 0,2%)
252 segments
So a few days ago we had a news here on
X from Kelshi that has now launched an
up or down market. So we can trade now
the 15minute crypto markets across
Bitcoin, Ethereum and Solana similar to
how we have it on Poly Market. So this
actually creates opportunities to some
kind of an arbitrage. You know, if you
have uh the same markets on Kali and
Poly Market, and if there's like a
mispricing between the outcomes, you
could potentially do some arbitrageing
here and uh make money.
There's another guy here that talks
about something similar where you can do
market arbitrage. So again between poly
market and calcium you find you know uh
markets that are similar or identical in
nature and then you do both sides on the
platforms when the total price is less
than a dollar. So for example as you say
in a perfect efficient world yes price
plus no price equals $1. But then there
will be cases just like we discussed on
a 15-minute market that the yes on
platform A and no on platform B is
actually less than a dollar. If we
monitor both 15-minute markets on, you
know, Poly markets and KI, we could
potentially do some arbitrage here when
the total price of yes no tokens is is
less than a dollar. So that's very
interesting and it's going to be
interesting to see how how this unfolds.
So there's another thing that a lot of
people they are talking about and that's
the bond market on uh on poly market. So
the bonds markets is basically where you
you actually take these very likely
events and it can look a little bit
risky like for example if you see here
he bets a 100,000 to win 101,000. So,
you're actually putting a lot of money
on the line to win. H not a lot, but
there's actually a a good, you know,
idea behind it. Like, if you can
consistently do one or two% on sure
trades, you know, every single day, you
can actually make a lot of money. So,
for example, in in his example, he have
almost 700 APY. And uh you know, that's
that's actually a lot of money in a in a
long term. But I think there's nuances
to it. We really have to understand well
what is actually going on here because
this guy here um a western he have a
good explanation of of how this actually
works. So most people think polyark just
about predicting outcomes and gambling
wrong. The real consistent edge is
mechanics and and one of the cleanest
place is bonding resolved market. So,
this I think is the key word here, a
resolved market
because I've seen other people talk
about taking a sure like these 99% bets
before the market is resolved. And if
you do that, well, then you have these
off chance that it's actually going to
resolve in the opposite end. So you have
these I don't know if you can call it
black swan events but most of the time
yeah you're going to make you know the
1% half a percent maybe then you only
take one really really bad bet to
completely wipe out the the entire
portfolio
but what he is talking about is actually
bonding on the resolved markets so if
you understand how the yuma um oracle
works you can consistently extract ee
and make money off those who don't
understand resolution ions. So how the
resolution works each poly market is
finalized based on a oracle resolution
where um Oracle verify the proposal for
the markets to finalize
the flow and outcome is proposed.
Challenge window is open. Somebody can
dispute the proposed outcome by paying a
bond.
UMA tokens hold a vote on the truth the
determined outcome and outcome can be
challenged 2x. If two challenges are
unsuccessful, the market is fully
resolved. So how it actually works? The
bonding alpha when the market is in
review, it is being reviewed by the
Oracle before fully completing as yes or
no. Clicking in review will take you to
the Oracle page. So here we can see the
example it's 100% but yes it's 99.9.
So I I suppose the idea here is you
basically collect you know one 0.1%
but buying yes and it also depends on if
you have the you you need to have
liquidity right to be able to buy. Yes.
So it's for the people that don't want
to wait for it to be resolved. The alpha
is that a market can be resolved on um
while remaining in review on poly
market. The gap in time of umema
resolving and poly market resolving is
where the money is made. Once has
finalized an outcome, the probability of
reversal is zero but price often lags
because users don't understand your main
mechanics. Users want liquidity
immediately. They don't want to wait for
full resolution. people wait for poly
market to resolve and opposed
people wait for poly market to resolve
as opposed to um so I mean yeah that
makes sense if there's a lack between
the oracle and then poly market actually
resolving the the the event then you
know for sure that yeah it is resolved
we're just waiting for poly market to
sort of you know market as resolved and
then there's potentially a you know an
opportunity to to scrape you know very
little money but you know from from from
this seems like it's like 100%. So it
for sure it's interesting and it's uh
you know it's it's something you
probably don't want to do manually. You
definitely want to create like an
automated bot that does this
automatically. So how profitable is this
if the reward rewards are so small? It's
one of the most profitable strategies on
polar market in my opinion in his
opinion as 0.1 return on $1,000 is $1
per bond at 99.9.
Imagine do this once a day. That's $365
per year using $1,000. So that's a 36.5%
APY,
which is yeah, that's, you know, that's
that's re that's very good. You know, if
you can do this consistently and with no
risk. So like we really have to
emphasize here that we need to make sure
that it can never resolve to the
opposite end. So we need to make sure
that it is resolved. just waiting for
like Poly Market to basically, you know,
click a button or something like that.
And another thing about it is, yeah,
then you also need a lot of capital
because, yeah, $1,000, yep, you can do a
decent amount per per year, but, you
know, it's not going to grow
exponentially as we see other traders
do. You probably need a lot of money to
to really capitalize on this. Here's
another example of a guy that does uh he
did two bonds yesterday at 0.1% profit
each. It gives me 0.2% 2% in one day. So
for this guy, 73% APR here. He won
$14,000
with a bet of $13,986.
So that's, you know, that's pretty crazy
to think about. He bet almost $14,000
to win $14.
So 14 divided by 13
986.
So yeah, that is 0.1%.
I mean, it sounds crazy and it kind of
looks crazy that you put so much on the
line
and you probably did do not want to do
this if it's not 100% sure. Like even if
there's the slightest chance this not
working, it's not worth it because just
one of these bets that resolves to, you
know, the opposite of what you, you
know, bought, it's going to wipe out
your entire
returns for several years. And here's
another one with Micro Strategy. He bet
actually the same amount and it won
14,000. And here's another one. bro
dropped 7 million to win 15,000. So, I
mean, I don't know if this is uh is if
this is photoshopped or not. I mean, I
didn't really verify if this is true or
not, but the there's this guy here, poor
sub. He did well Melania say Korea doing
AI talk on Friday
and he bet
7,196,870
to win 0.21%.
And so here he has here we have his
profile
and he actually have active
uh position right now. So he did will
trump Trump say million a billion
trillion 10 times doing CNBC interview.
So he put a million dollars and he made
$1,000 so far.
So he bought at 99.8 8 and currently
it's 99.9
and then closed.
Yeah, we have it. We have the one here
um
where he bet 7 million. He did
6 million
and 100,000 4 million
2 million 1 million 2 million one and a
half. That's I mean that's just crazy,
right? So he does like a thousand here
and there in in profits which is pretty
mind-boggling.
And if we do his profit loss,
he have made 113,000
all time. He started in October, didn't
really make much.
So he's basically just scraping it. This
looks like it's manual for sure. It's
manual trades, I suppose. betting, you
know, a million a time is crazy. And
done um 63
predictions currently have a position
value 1.6 million. So that is
bonding in a nutshell. Yeah. So that was
all for now and if you haven't joined
already, please go ahead and join our
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we're just growing this Discord and
building it out as we go. So, um, you
can, uh, join the Discord today. And
I've made sure to leave a invite down in
the description below. So, until next
time, have a good one and see you.
Bye-bye.
Ask follow-up questions or revisit key timestamps.
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.
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