Polymarket Launches Protocol V2, New Markets Switch Nov 2

Polymarket Unveils Major Protocol Upgrade, Protocol V2, Set for November 2 Launch

Polymarket, a decentralized prediction market platform, has announced the launch of Protocol V2, a significant overhaul of its core architecture. This new system is slated to power all new markets on the platform starting November 2. The upgrade marks a departure from the Gnosis Conditional Tokens Framework, which Polymarket has utilized since 2019.

A Unified and Modular Architecture

The rollout of Protocol V2 commenced on October 5, 2026, spearheaded by Polymarket’s development team and protocol head, Rajath Alex. The platform describes the new system as unified, modular, and thoroughly audited. A key change under V2 is that every outcome share will now reside within a single ERC-1155 positions token contract. The ERC-1155 standard allows a single smart contract to manage multiple distinct token types simultaneously, streamlining operations.

pUSD as the Sole Collateral

With the implementation of V2, pUSD will become the exclusive form of collateral accepted for backing positions on the Polymarket platform. This move aims to simplify accounting and settlement processes by concentrating all collateral into a single asset.

Enhanced User Experience and Operational Efficiency

The protocol also introduces market-specific exchanges, integrated with a router. This router acts as a front-end intermediary, directing orders to their appropriate destinations. Polymarket asserts that this enhancement will significantly improve both user experience and operational efficiency.

Pluggable Oracles for Flexible Resolution

Protocol V2 features an OracleAggregator that makes oracles pluggable, supporting a range of providers including UMA and Chainlink. This flexibility means Polymarket is no longer tied to a single method for determining market outcomes. Instead, it can now select the most suitable resolution source for each individual market, ensuring greater accuracy and adaptability.

Phased Rollout and Testing

A limited set of live test markets, known as canary markets, have been running from October 5 through October 30 to facilitate testing and gather feedback. All new markets will transition to V2 on November 2. Importantly, existing markets built on the Conditional Tokens Framework will remain unaffected, with no forced migration of open positions occurring mid-trade.

Developer Upgrades and Data Access

Developers will benefit from an upgraded Data API v2. This new API operates on an in-house on-chain indexer, enabling Polymarket to directly read and organize blockchain data rather than relying on external tools. The Data API v2 offers standardized data formats and cursor-based pagination, which Polymarket states will reduce friction for developers building dashboards, trading tools, and analytics on top of its data.

Robust Security Measures

Polymarket has prioritized security for Protocol V2, with six independent firms, including Certora, conducting audits. Furthermore, the platform is running a bug bounty program offering rewards of up to $5 million for the discovery of critical vulnerabilities.

The key dates for this transition are October 30, marking the conclusion of the canary markets, and November 2, when Protocol V2 becomes the standard for all new market creations on Polymarket.