Polymarket Expands with In-House Market Makers to Boost Liquidity Ahead of US Launch

Source: CryptoNewsNet Original Title: Polymarket may be tapping market making help in shift to boost liquidity Original Link: Polymarket is recruiting an in-house team of traders and market makers to prepare for platform growth following a record month of activity. The prediction platform is seeking to boost liquidity, which has primarily relied on whale positions.

Market Maker Implementation

The prediction platform has reportedly added internal market makers that could trade against customers. While this feature has faced criticism for potentially skewing markets against retail traders, it aims to improve liquidity. Rumors suggest that established market makers are joining the platform to support this expansion.

The hiring announcements indicate that Polymarket is reaching out to traders with professional sports betting backgrounds to join the in-house trading team. This strategic move comes as the platform prepares to launch in the US market through a closed beta on its iOS app.

Whale Influence and Market Concerns

While Polymarket continues to grow, concerns persist about whale influence on predictions. The platform has become specialized enough that traders now seek arbitrage opportunities, niche expert knowledge, and early information about real odds.

Platform explorers have identified accounts with connections to major market makers on the platform. This concentration of influence raises questions about market neutrality, particularly as Polymarket was originally presented as an engine for truth discovery based on distributed trader opinions.

Market Structure Comparison

Unlike some competitors that apply in-house trading teams working against users (similar to traditional sportsbook models), market makers in Polymarket may serve a different function by taking up less popular positions and ensuring specific markets remain liquid.

Growth Metrics and Adoption

Polymarket has demonstrated impressive growth metrics. The platform carried over $286M in open interest, with rapid vertical growth in recent months. In November, the platform reached a record with over 494K active traders.

The platform has become increasingly attractive due to the absence of rapid liquidations and losses common in other crypto markets. Predictions are gaining influence as an alternative to perpetual futures, offering greater simplicity without requiring advanced technical or trading knowledge. Polymarket’s volumes have recently expanded to surpass certain segments of the meme token market.