Polymarket Updates Rules in Response to Manipulation Allegations
2026-08-07 23:10:17
According to CoinMeta, after discovering manipulation behavior in the Polymarket market, a change was made to replace the single-price snapshot used for settling short-term crypto contracts with a time-weighted average price (TWAP). The study found that 821 accounts earned $8.2 million within the settlement periods suspected of being involved in manipulation, which led to criticism of the Polymarket rules. Polymarket stated that in order to protect market integrity, they will update the market settlement method and increase liquidity rewards by $1 million in August to support the transition. The five-minute market will use a 30-second average, while the 15-minute and four-hour markets will use a 60-second average. Researchers pointed out that the settlement prices of asset price contracts may be affected by trading behavior in the exchange market.
Source:CoinDesk
This content is for market information only and does not constitute investment advice.
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