TLDR
- Protocol V2 testing began October 5, with production launch scheduled for November 2.
- New architecture consolidates all outcome shares into a single ERC-1155 contract, retiring the Gnosis CTF framework.
- All new markets will settle exclusively in pUSD collateral.
- OracleAggregator module enables markets to resolve via UMA, Chainlink, or manual reporters.
- Polymarket secured audits from six security teams and offers bounties up to $5 million for critical vulnerabilities.
Polymarket has announced the deployment of Protocol V2, a fundamental overhaul of the platform’s settlement infrastructure. The upgrade modifies market creation, outcome resolution, and position tracking across the prediction market.
The protocol entered testing on October 5, 2026. According to protocol head Rajath Alex, canary markets—restricted pilot deployments—will continue operating until October 30. Full migration of new market creation to V2 is targeted for November 2, though the platform notes this timeline remains subject to adjustment.
V2 Architecture Replaces Legacy Framework
Polymarket’s existing infrastructure was built on the Gnosis Conditional Tokens Framework, originally deployed in 2019. That design required separate adapter contracts for each market variant introduced over subsequent years.
Protocol V2 eliminates this fragmented structure. The new design consolidates all position tokens under a single ERC-1155 contract, creating a unified standard for outcome shares regardless of market type.
Token identifiers in V2 contain embedded metadata. Each position ID now includes the module type, condition hash, and specific outcome in its on-chain representation.
A Router component has been introduced to handle order routing. This contract directs incoming trades to the appropriate exchange module based on market configuration.
Polymarket has deployed four market modules to Polygon mainnet. These support binary outcomes, two variants of negative-risk structures, and combinatorial prediction formats.
Unified Collateral Standard Adopted
All markets created under V2 will denominate positions exclusively in pUSD. This token functions as a 1:1 wrapper for both USDC and USDC.e.
pUSD was introduced earlier in 2026 as part of prior platform enhancements. Its initial deployment predates the V2 protocol launch.
The shift is one of standardization. Rather than supporting multiple collateral options, every V2 market module now requires pUSD as the settlement asset.
Developers already integrated with pUSD won’t face collateral migration work. However, allowances and permissions configured for the legacy CTF framework will need to be reissued.
Existing positions denominated in CTF tokens remain unaffected. Polymarket confirmed no forced migrations will occur for active markets.
The settlement process receives new flexibility through the OracleAggregator component. This module sits between markets and the data sources used to determine final outcomes.
Three reporter types are currently supported: UMA’s Optimistic Oracle, a Chainlink-based module, and direct reporting via externally owned accounts. Markets can configure fallback logic and resolution thresholds according to their requirements.
Chainlink integration relies on Data Streams for markets tied to financial prices. UMA continues to serve markets that resolve based on off-chain events without standardized feeds.
V2 contracts include preliminary support for cross-chain operations via Chainlink’s CCIP protocol. No launch date has been announced for multi-chain markets. Polygon remains the exclusive settlement layer in the near term.
Polymarket engaged six independent auditors to review the V2 codebase. Participating firms included Cantina, Certora, Quantstamp, Pashov, Sigma Prime, and Zellic.
Certora conducted formal verification on the Exchange, Position Manager, and OracleAggregator contracts. Alex stated that the platform’s ongoing bug bounty program offers rewards reaching $5 million for critical security issues.
A parallel transition affects the platform’s API layer. Data API V1 will be deprecated on October 24, eight days before the scheduled V2 market cutover.
Data API V2 utilizes a custom indexer developed internally. The new version implements cursor-based pagination, eliminating the 10,000-result cap present in the offset-based predecessor.
End users should experience minimal disruption when V2 activates. Polymarket notes that certain new markets may trigger additional transaction approval requests in user wallets.
Canary testing remains in progress as of publication, with completion planned for October 30. The transition to Protocol V2 for all new market deployments is scheduled for November 2.
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