Polymarket begins testing Protocol V2 for new markets

Polymarket, which has used Gnosis’s Conditional Tokens Framework since 2019, has begun running production canary markets on a rebuilt system called Protocol V2, according to The Block’s report on the rollout.

The change puts positions, collateral and market trading on a redesigned contract architecture as Polymarket adds more market types.

What changes in Polymarket’s contract setup?

Protocol V2 replaces the older framework for new markets with a single ERC-1155 positions contract, pUSD collateral, an exchange for each market type and a router. ERC-1155 is a token standard that can represent multiple kinds of assets in one contract; here, it is used to consolidate market positions.

Protocol lead Rajath Alex said the redesign aims to reduce the layers of contracts added as Polymarket introduced new market types. The Block reported that V2 also includes a Data API V2, a Rust service built around Polymarket’s in-house onchain indexer.

Which markets and resolution sources are included?

The initial V2 system covers four market types: Binary, Atomic Neg-risk, Incremental Neg-risk and Combinatorial. These labels describe different ways markets can group outcomes and pay out; the rollout brings them into the same broad protocol architecture.

Polymarket is also introducing an OracleAggregator that can connect to UMA, Chainlink and other data sources to resolve markets. The Block reported provisions for moving positions, collateral and resolutions across chains, which Polymarket says it plans to activate as it expands beyond its current network.

When do new markets switch to V2?

The production canary markets are scheduled to run through October 30. Alex gave November 2 as a tentative date for switching new markets to Protocol V2, according to The Block; that date is a target, not a confirmed completed migration.

For traders, the immediate development is a test period on live markets, followed by a planned change for newly created ones. The report does not say that existing markets will migrate, or specify user actions, fees or a pUSD conversion process as part of this Protocol V2 rollout.

Polymarket said the V2 code has been audited by Cantina, Certora, Quantstamp, SigmaPrime, Zellic and Pashov, and that Certora formally verified the code. The reported bug bounty offers up to $5 million for critical findings.

Sources

• The Block’s report on the rollout — theblock.co