Binance + Polymarket Latency Arbitrage: How Bots Exploit Micro-Delays in Prediction Markets (opens in new tab)

This isn't theoretical. Bots are reportedly making serious money by exploiting a few-second pricing lag between Binance spot BTC and short-term Polymarket BTC prediction markets (especially the 5-minute UP/DOWN markets). The gap is tiny. The impact, when scaled across thousands of cycles with proper risk management, is not. The Core Observation Open Binance spot BTC on a 1-second timeframe. Simultaneously watch the corresponding 5-minute BTC markets on Polymarket. When BTC makes a sharp impul...