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- Polymarket started production testing of Protocol V2, a rebuilt smart contract system changing how event positions are created, collateralized and settled.
- Canary markets will run from Oct. 5 through Oct. 30, and Polymarket plans to move newly created markets to V2 on Nov. 2.
- Existing Conditional Tokens Framework positions will not be automatically converted, and developers must support both legacy positions and V2 markets.
Polymarket has started production testing of Protocol V2, a rebuilt smart contract system that changes how event positions are created, collateralized and settled on the prediction market platform.
Canary markets will run from Oct. 5 through Oct. 30. Polymarket plans to move newly created markets to V2 on Nov. 2 if testing stays on schedule, while existing markets and positions will remain on the current infrastructure.
V2 Replaces Layered Position System With Unified ERC-1155 Structure
Polymarket’s existing architecture uses Gnosis’ Conditional Tokens Framework, with additional adapters and contracts added as the platform expanded into more market formats.
V2 replaces much of that structure with a unified ERC-1155 position system and modular market logic.
The design supports binary, negative-risk and combinatorial markets while reducing the need for separate adapters as new event structures are introduced.
PUSD Becomes Common Collateral Across V2 Markets
Protocol V2 uses Polymarket USD, or pUSD, as common collateral across its market modules. The token wraps USDC and USDC.e at a one-to-one ratio.
Polymarket introduced pUSD earlier this year, so the collateral itself is not new. Under V2, position management and settlement operations move onto a new unified contract and router architecture.
Existing Conditional Tokens Framework positions will not be automatically converted. Users can keep current holdings, while developers will need to support both legacy positions and V2 markets during the transition.
UMA and Chainlink Feed Into Modular Settlement Layer
V2 also introduces an OracleAggregator that can receive market outcomes from different resolution systems, including modules for UMA’s Optimistic Oracle and Chainlink Data Streams.
That gives Polymarket flexibility to use different resolution methods depending on the market rather than relying on one oracle structure.
V2 also includes cross-chain infrastructure for collateral, resolution results and supported position types, although combinatorial positions are not currently bridgeable.
Data API V1 Retires October 24 Ahead Of Developer Migration
Developers have an earlier migration deadline than market creators. Polymarket will retire Data API V1 on Oct. 24, requiring integrations to move to the new API before the planned Nov. 2 switch for newly created markets.
The Nov. 2 date remains dependent on the canary testing period running successfully through Oct. 30.
