Lead-Lag Arbitrage on Polymarket

This strategy identifies lead-lag relationships where Polygon-based Polymarket prices lag behind BTC spot price changes on Binance or Coinbase by 2–5 seconds. The bot continuously monitors BTC price movements and executes buy/sell orders on Polymarket when a significant lag gap (>0.5%) occurs. Entry happens when the lagged Polymarket price is below the spot, exit when the gap narrows to <0.1% or after 15 seconds. The report indicates 5-minute Bitcoin directional markets have been confirmed edge-free, but shorter windows (e.g., 1-minute) may still show exploitable latency. Implementation requires low-latency WebSocket feeds from both platforms and automated order execution via Polymarket's API.