Polymarket has unveiled Protocol V2, a new core architecture designed to power all new markets on the platform starting November 2. The upgrade replaces the Gnosis Conditional Tokens Framework that has underpinned the protocol since 2019.
The rollout began October 5 with canary markets, a limited set of live test markets that will run through October 30. On November 2, all new markets will move to V2. Existing markets built on the Conditional Tokens Framework will remain unchanged, ensuring open positions are not forcibly migrated mid-trade.
Key Technical Changes
Protocol V2 introduces several structural changes to the platform. All outcome shares now live in a single ERC-1155 positions token contract, a token standard that allows one smart contract to manage multiple token types simultaneously.
The upgrade establishes pUSD as the only accepted collateral for positions on the platform. Market-specific exchanges paired with a router direct orders efficiently, which Polymarket says improves user experience and operational efficiency.
A new OracleAggregator makes oracles pluggable, supporting providers such as UMA and Chainlink. This gives Polymarket flexibility to select the resolution source suited to each market rather than being locked into a single oracle provider.
Developer Tools and Security
Developers receive Data API v2, which operates on an in-house on-chain indexer. Polymarket now reads and organizes blockchain data internally rather than relying on outside tools. The new API offers standardized data formats and cursor-based pagination.
Security testing involved six firms auditing the protocol, including Certora. Polymarket is also running a bug bounty program offering up to $5 million for critical vulnerabilities.
Implications for the Ecosystem
The pUSD-only collateral model simplifies accounting and settlement across the platform. The market-by-market oracle flexibility allows Polymarket to match resolution methods to specific questions. For developers building on Polymarket, standardized data formats and reliable pagination lower friction when creating dashboards, trading tools, and analytics.
