Polymarket Sniper Bot

A High-Frequency Trading (HFT) Sniper Bot designed for deterministic speed and precision on Polymarket. This bot bypasses traditional UI interfaces and interacts directly with the CLOB (Central Limit Order Book) to capture arbitrage opportunities in nanoseconds.

⚡ Performance

Decision Latency: 16.7ns (59x faster than 1μs HFT requirement)

Component	Latency	Status
Decision Pipeline	16.7ns	✅ Excellent
Orderbook Helpers	0.3ns	✅ Excellent
Kelly Calculation	2.0ns	✅ Excellent
Total Liquidity	3.3ns	✅ Excellent

Optimizations Applied:

• Fixed-size arrays (zero-allocation)
• CPU pinning (core isolation)
• Inline hints on hot paths
• Lock-free data structures
• Memory arena allocator

Features

• ⚡ Ultra-Low Latency: 16.7ns decision making with zero allocations
• 🎯 Intra-Market Arbitrage: Detecting price inefficiencies (Yes + No < 1.0)
• 🔌 Real-Time L2 Orderbook: Full depth analysis with 50-level orderbook
• 💰 Dynamic Position Sizing: Kelly Criterion with volatility adjustment
• 🛡️ MEV Protection: Flashbots integration for private transactions
• 🔎 Mempool Monitoring: Copy-trading detection and front-running prevention
• 🧪 Paper Trading: Safe simulation mode included
• 📊 Live Dashboard: Real-time PnL and performance metrics

Quick Start

1. Installation

Build the project in release mode for maximum optimization:

cd polymarket-hft-agent
cargo build --release

2. Configuration

Create a configuration file from the example template:

cp .env.example .env
nano .env

Required Credentials:

# Wallet Configuration
POLYGON_PRIVATE_KEY=0x...  # Your wallet private key (from MetaMask/wallet extension)

# Trading Mode
PAPER_TRADING=false  # Set to false for live trading

# RPC Endpoints
POLYGON_WS_RPC=wss://polygon-mainnet.g.alchemy.com/v2/YOUR_KEY
POLYGON_HTTP_RPC=https://polygon-mainnet.g.alchemy.com/v2/YOUR_KEY

Important Notes:

• ✅ SDK Auto-generates API credentials - No manual API key configuration needed!
• ✅ Safe wallet derivation - SDK automatically derives your Gnosis Safe wallet from your EOA
• ⚠️ Minimum order size: 5 tokens (approximately $2.50-$5.00 depending on price)

Wallet Architecture:

Your EOA (MetaMask)
    ↓ SDK derives
Gnosis Safe Wallet (Signup address)
    ↓ Controls
Trading Wallet (Where funds are held)

The SDK uses your EOA private key to sign orders on behalf of your Gnosis Safe wallet.

Optional (Flashbots):

• FLASHBOTS_ENABLED=true: Enable MEV protection
• FLASHBOTS_RELAY_URL: Flashbots relay endpoint

3. Execution

Run the sniper in release mode:

cargo run --release

Access dashboard at http://localhost:3002

SDK Integration

This bot uses the official polymarket-client-sdk for all Polymarket interactions.

Key Features

• ✅ Automatic API credential generation from your private key
• ✅ Gnosis Safe wallet support for browser extension users
• ✅ Type-safe order building with compile-time validation
• ✅ Real-time market data via WebSocket subscriptions

Wallet Setup

When you connect to Polymarket via browser extension (MetaMask, etc.), Polymarket creates a Gnosis Safe wallet for you. The SDK automatically:

1. Derives your Safe wallet address from your EOA
2. Signs orders using your EOA on behalf of the Safe
3. Accesses funds in your trading wallet

Verification Script:

cargo run --example verify_proxy_derivation

This will show your:

• EOA address (from private key)
• Safe wallet address (signup address)
• Proxy wallet address (if using Magic Link)

Testing Order Placement

Before running the full bot, test order placement:

cargo run --example test_order_sdk

This will:

1. Check your balance
2. Fetch active markets
3. Place a test order (minimum $5)

Expected output:

✅ LIVE ORDER SUCCESS: ID 0x...

Architecture

WebSocket (Core 1) → Lock-Free Queue → Strategy (Core 0) → Flashbots → CLOB
                                              ↓
                                       Memory Arena

1. Market Monitor: Subscribes to Level2 orderbook updates via WebSocket
2. Sniper Strategy:
   • Analyzes full orderbook depth (50 levels)
   • Calculates weighted average prices and slippage
   • Dynamic position sizing using Kelly Criterion
   • If Sum < 1.0 - Fees - MinEdge, triggers BuyBoth signal
3. Risk Manager: Validates position limits and portfolio exposure
4. Executor: Submits atomic bundles via Flashbots or regular transactions

Performance Benchmarks

Verified via cargo bench --bench latency:

Decision Pipeline:        16.7ns  (-8.2% vs baseline)
├─ Opportunity Check:     17.7ns
├─ Orderbook Analysis:    4-14ns (depth-dependent)
├─ Kelly Calculation:     2.0ns
└─ Position Sizing:       <1ns

Orderbook Helpers:
├─ best_bid/ask:          0.29ns (-12%)
├─ total_ask_liquidity:   3.3ns  (-41%)
└─ total_bid_liquidity:   6.0ns

Network Latency: Depends on location relative to Polymarket CLOB servers

Development

Project Structure

• src/main.rs: Entry point with CPU pinning
• src/sniper.rs: Core engine loop
• src/strategies/arbitrage.rs: Trading logic with L2 analysis
• src/strategies/position_sizing.rs: Kelly Criterion implementation
• src/polymarket/ws.rs: WebSocket client
• src/polymarket/lockfree_queue.rs: Lock-free SPSC queue
• src/execution/flashbots.rs: MEV protection
• src/execution/cpu_affinity.rs: CPU core pinning

Running Benchmarks

cargo bench --bench latency

Running Tests

cargo test

License

MIT License

Disclaimer

Trading cryptocurrency and prediction markets involves significant risk. This software is provided for educational and experimental purposes only. The authors assume no responsibility for financial losses incurred while using this software. Always trade responsibly.