Polymarket
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In Brief
Polymarket is the largest decentralized prediction-market platform, where users trade shares in real-world event outcomes using USDC on Polygon, with markets resolved by the UMA optimistic oracle.
What Is Polymarket?
Polymarket is the largest decentralized prediction-market platform by trading volume. It lets users buy and sell shares tied to the outcomes of real-world events — politics, sports, crypto prices, macro data, and pop culture — using USDC stablecoin on the Polygon blockchain.
Each market is a smart contract that issues two complementary tokens: a "Yes" share and a "No" share. Together they always pay out exactly $1 — so prices float between $0 and $1 and can be read directly as the market's implied probability.
Polymarket uses a central limit order book (CLOB) for matching, which gives traders price-time priority and tight spreads — a structure closer to a traditional exchange than to AMM-based DEXs.
How Does Polymarket Work?
A user connects a self-custody wallet to Polymarket.
They deposit USDC on Polygon as collateral.
They buy "Yes" or "No" shares of an event at the current order-book price.
Prices fluctuate continuously as new information arrives and other traders place orders.
When the event resolves, the UMA optimistic oracle posts the outcome onchain.
Winning shareholders redeem their shares for $1 each in USDC.
Key Features of Polymarket
CLOB Order Book
Polymarket uses a central limit order book, giving traders deeper liquidity and tighter spreads on high-volume markets than AMM-based prediction venues.
USDC-Settled
All collateral, trading, and payouts happen in USDC — no native token required.
UMA Resolution
Markets resolve via UMA's optimistic oracle: a proposed answer is posted, and anyone can dispute it during a challenge window before it's finalized onchain.
Self-Custody
Users keep custody of their funds at all times. Polymarket cannot access user wallets.
Broad Market Catalog
Politics, US and global elections, sports, economic indicators, crypto prices, entertainment, and breaking-news events.
Polymarket vs Centralized Sportsbooks
| Feature | Polymarket | Centralized Sportsbook |
|---|---|---|
| Custody | Self-custody | Operator custody |
| KYC | No KYC required | Typically required |
| Settlement | Onchain (UMA oracle) | Internal ledger |
| Pricing | Trader-driven order book | House-set odds |
| Coverage | All event types | Mostly sports |
| Transparency | Publicly auditable | Opaque |
Use Cases
Non-custodial event trading for users who want to express directional views without a centralized account
Hedging against political, regulatory, or macro outcomes
Probability discovery — Polymarket prices are widely cited as crowd-sourced forecasts in media coverage
Trading from a self-custody wallet without onboarding to a sportsbook
Availability
Polymarket is not available in all jurisdictions. Trading is restricted for users in the United States and certain other countries due to local regulations. Check Polymarket's terms of service for the current list of restricted regions.
Polymarket and Trust Wallet
Trust Wallet offers native in-app access to Polymarket from your self-custody wallet, letting you trade prediction markets directly without bridging USDC manually or creating a separate Polymarket account. Availability varies by region.