Developer finds Polymarket bots lose money when tracking Binance instead of Chainlink
A developer running an open-source Polymarket trading bot discovered that using Binance spot prices as a reference was causing real financial losses. Polymarket settles its crypto markets using Chainlink Data Streams and Chainlink Automation, not exchange feeds, meaning the two prices can diverge by 0.3% to 0.8% during volatile periods. In binary markets, even a $2 price difference at the moment of resolution determines whether every open position wins or loses. The developer updated the bot to pull prices directly from Chainlink's Data Streams API and added checks for feed staleness. An additional complication is that Chainlink Automation introduces a small execution delay beyond the listed market end time, especially when the Polygon network is congested.
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