Scaling Prediction Markets to Billions: Polymarket Delivers Fast, Secure and Reliable Onchain Experiences with Magic

Polymarket, the world’s largest prediction market, has relied on Magic’s embedded wallet infrastructure since 2020 to provide users a fast, secure and reliable way to trade and manage funds.

Magic enables one-click wallet creation on Polymarket

#Key results with Magic: 

• Over $3B in market volume supported during the 2024 election night with zero downtime and peak traffic stability throughout
• 50x hyper-growth in monthly active users
• Sub-second response times across wallet login and transaction flows
• Improved user retention and conversion thanks to faster onboarding and withdrawals

“Election night was one of the biggest stress tests we’ve ever seen,” said Rodrigo, Head of Platform at Polymarket. “Magic’s infrastructure handled it seamlessly.”

Magic’s Infrastructure Traffic on Election Day

#The Challenge

In 2024 Polymarket experienced rapid growth with active traders spiking over 80x during the 2024 U.S. election. This growth created several technical challenges:

• Performance bottlenecks during new wallet creation and authentication flows
• Security concerns around high-risk actions like withdrawals and tipping
• Reliability under extreme traffic especially during real-time global events

Polymarket needed a battle-tested, trusted wallet infrastructure that could handle massive concurrent, secure transactions at scale and provide users with a seamless UX.

#The Solution

Since 2020, Polymarket has relied on Magic as its sole embedded wallet provider to power onchain access for every user. As the platform grew into one of the largest and most successful onchain apps in the world, that partnership deepened with the two teams working side by side to re-architect Polymarket’s wallet experience for the next stage of scale.

Built on Magic’s API Wallets — a server-side, TEE-secured wallet infrastructure — the new system delivers both enterprise-grade security and highly scalable performance, giving users an experience that feels instant, even during global traffic spikes. Faster performance means: 

• Wallet iframe bundle reduced from ~2 MB to ~450 KB, a 4.5x optimization significantly improving load times across all devices
• Selected wallet and auth flows deployed through the Vercel Edge Network for sub-second latency worldwide
• Core authentication pipelines rebuilt to cut response times by more than half:
  • Email link login: 2.5x faster
  • OAuth initialization: 2.8x faster

Magic’s New TEE API Wallet

To strengthen user protection during withdrawals, Magic and Polymarket jointly developed a step-up 2FA policy engine that adds an extra layer of verification for high-risk actions as defined by Polymarket. Built on Magic’s infrastructure and anchored by Newton Protocol, a verifiable policy layer for programmable onchain security, the engine dynamically evaluates risk conditions (e.g., withdrawal thresholds, device anomalies, session heuristics) off-chain before any wallet signing occurs, then records the signed outcome of the policy evaluation on-chain through Newton Protocol's verifiable and privacy-preserving policy ledger. This creates a secure, fast and verifiable policy for step-up 2FA keeping users' funds safe without disrupting UX.

Magic x Newton Secures Polymarket Wallets and Transactions

#Why Magic Labs

Since 2018, Magic has provided battle-tested wallet infrastructure and is trusted by over 200,000 developers across 50 million+ wallets. By combining patent-pending TEE-secured key management, server-side APIs, and multi-chain support, Magic enables companies like Polymarket, WalletConnect, Naver, Forbes, Mattel and more to deliver seamless, secure onchain experiences that scale to millions.

“Every millisecond matters when you’re serving users at global scale,” said Magic Labs Cofounder and President, Jaemin Jin. “Polymarket’s growth shows what’s possible when speed and security come together.”

Ready to build with the most secure, battle-tested wallet infrastructure—now featuring the new standard for onchain transaction compliance? Connect with us!