Polymarket LP Tool (polymarket_lp_tool)

What it is

A tool for one narrow job on Polymarket: keeping limit orders you placed by hand inside the band that earns liquidity rewards. It is published on GitHub by the account lihanyu81, whose README signs it as @臭臭Panda, and it says in plain words that it is not a fully automated market-making bot. It creates no initial orders. It watches the open orders under your account and, for each one, keeps it, cancels it, or cancels and re-posts it at a new price with the same size.

How it chooses, from the README:

• Coarse-tick markets (one-cent ticks). It collects the price levels inside the reward half-band that already have resting depth on your side of the book. With two or fewer, it cancels and does not re-post. With three it takes the middle one by distance from the midpoint, and with four or more the second-farthest - which places your order behind other resting orders rather than at the front of the queue.
• Fine-tick markets (tenth-of-a-cent ticks). It measures how far your price sits from the midpoint as a share of the reward half-width, leaves it alone between 0.4 and 0.6 of the band, and moves it back toward the middle of the band otherwise.
• Custom rules per token and side override both, set through Telegram commands, the web panel, or environment variables.

There are two implementations in one repository. The Python version is the original and is kept "for learning reference"; the Rust rewrite in rust_mm_bot/ is announced as "Polymarket LP Tool 2.0" and the main line for future work. The README's own comparison table then marks the Python version production-ready and the Rust one experimental, to be validated with small size first. The Rust version streams the market and user WebSocket channels and adds filters meant to stop it chasing a jumping midpoint.

Availability

It runs on any machine that has Python or a Rust toolchain; the README is written for an Ubuntu cloud server under tmux. The venue it trades on is international Polymarket, which bars US persons and a long list of other places by physical location - the polymarket card has the detail. The flags on this card are that venue's reach, because a tool that re-prices live orders is only any use where you may hold them.

The repository ships a proxy set-up note. readme_ip.md, in Chinese, walks through installing the x-ui proxy panel on a cloud server, adding a SOCKS inbound, and pointing a browser at it with a proxy extension. The README's disclaimer asks users to respect Polymarket's geographic restrictions; Polymarket's own terms prohibit using a VPN to get around them and give the consequence as a wallet put into close-only mode. Read why a venue is unavailable where you are before routing an account through anything.

Pricing

No price and nothing to buy. Resting orders that fill pay no Polymarket fee; any exit you take with a marketable order pays the taker fee on the polymarket schedule. What the tool is for - the rewards themselves - is Polymarket's programme, paid on Polymarket's terms, and the README's disclaimer says it gives no assurance about reward scoring or profit.

The README and the Rust dashboard carry the author's Polymarket invite link, and the dashboard also prints the author's X, WeChat and Telegram contacts "for strategy customization". The invite link is optional.

Markets & resolution

The tool resolves nothing and chooses no markets: it manages whichever orders you placed, in any category. Resolution on international Polymarket runs through the UMA optimistic oracle. A resting order is a standing offer to take on inventory, and inventory still held at resolution is a directional position in the outcome.

Integrations

The Python version depends on four packages - Polymarket's py-clob-client-v2, websockets, python-dotenv and Flask for the optional web panel. The Rust version signs V2 orders itself, with its own EIP-712 implementation over the k256 curve, rather than through a Polymarket SDK.

Telegram is the remote control: fill alerts, half-hourly account summaries, and commands such as /status, /orders, /pnl and /set_rule. The Python web panel listens on 127.0.0.1:8765 behind a token you set; the Rust dashboard listens on 127.0.0.1:8787 and exposes /api/state and a /api/set_rule endpoint that accepts changes. Both are local panels served by the process on your own machine, not a hosted site; that is all web means in the platforms above.

No HTTP API for other programs, no MCP server, no second venue.

Limitations

Not open source. There is no LICENSE file anywhere in the repository and no licence named in either README. Reading it on GitHub is permitted; copying, modifying and running it has not been licensed to anyone. 551 stars and 107 forks, counted on 30 September 2026, do not change that.

A fill ends the tool's involvement. The Python loop skips any token in which you hold inventory, so the moment an order fills that market is yours to manage by hand. The tool is built to earn rewards on orders that ideally never fill; it has no exit logic for the ones that do.

Your private key sits in a plain .env file and, in the Rust version, is used by a signer written for this project rather than a vendor SDK. The Rust dashboard's rule endpoint checks no token in the code we read, so keep it bound to localhost. Where your key lives covers what the file exposes.

Quiet since May. Twenty commits between 1 April and 6 May 2026; the last two migrated the Python version to CLOB V2 on 29 April and released the Rust version on 6 May. Nothing since, no releases or tags, and no issues have ever been filed. The two headline messages in the README - Rust is the future, Rust is experimental - were written in the same commit and have not been reconciled.

Much of the documentation is in Chinese. The English README is a full translation; the proxy note, commit messages and several configuration comments are not.

Nothing here has been run by us - no order was placed, re-priced or scored.

Alternatives

poly-maker is the fully automated version of the same idea: it chooses political markets, posts both sides itself, manages inventory and exits, and is MIT-licensed.

To do this job yourself, polymarket-cli exposes Polymarket's reward endpoints from a terminal, and polymarket-client is the vendor's own library to build a loop on. Where the liquidity comes from explains what a resting order is standing in front of, and what a bot cannot fix what happens to it when a market pauses or resolves.