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How a five-second trick let traders drain millions from Polymarket
['Olivier Acuna']
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data
“To protect market integrity in our crypto up/down markets, we're updating how these markets resolve,” Polymarket said in the X post detailing the changes.
“To support liquidity through this transition, we're adding $1M in liquidity rewards across all impacted markets through the month of August.”
Five-minute markets will use a 30-second average, while 15-minute and four-hour markets will use a 60-second average, the platform explained.
“The vulnerability is structural,” the researchers from Stanford University and Singapore Management University wrote.
“An asset-price contract settles on a financial price, and that price can be moved by trading the underlying market itself.”