Polymarket & Airdrop Glossary
Key terms you need to understand for Polymarket and the POLY token airdrop.
Airdrop
A distribution of free tokens to wallet addresses, typically as a reward for early platform usage, community engagement, or meeting specific eligibility criteria.
CLOB (Central Limit Order Book)
Polymarket's order matching system where buy and sell orders are listed by price. Unlike AMMs, CLOBs match specific orders, enabling tighter spreads and more efficient price discovery.
FDV (Fully Diluted Valuation)
The theoretical market cap if all tokens were in circulation. Calculated as token price × total supply. Used to compare token valuations across projects.
Farming
Strategically using a platform to build activity history and qualify for potential airdrops. Involves genuine platform engagement — trading, providing liquidity, and consistent participation.
Limit Order
An order placed at a specific price that waits to be filled. On Polymarket, limit orders contribute to liquidity and can earn rewards through the liquidity program.
Liquidity Provider (LP)
A user who places resting orders on the order book, making it easier for others to trade. LPs earn rewards for keeping markets liquid and tradeable.
Prediction Market
A market where participants trade on the outcome of real-world events. Prices reflect the crowd's estimated probability of each outcome. Winning shares settle at $1.00.
Polygon
The blockchain network that Polymarket is built on. An Ethereum Layer 2 solution offering fast, low-cost transactions while inheriting Ethereum's security.
Snapshot
A record of all wallet addresses and their activity at a specific point in time. Used by projects to determine airdrop eligibility based on historical usage.
Sybil Attack / Sybil Resistance
A Sybil attack is when one person creates multiple identities (wallets) to unfairly claim multiple airdrop allocations. Sybil resistance refers to measures projects take to detect and prevent this.
TGE (Token Generation Event)
The official launch of a token — when it becomes tradeable on exchanges. The POLY TGE is confirmed but not yet scheduled.
USDC
A stablecoin pegged 1:1 to the US dollar. The primary currency used for trading on Polymarket. Issued by Circle and fully backed by reserves.
Wash Trading
Buying and selling the same asset repeatedly to artificially inflate volume. Projects typically filter wash trading from airdrop eligibility calculations.