Prediction market platform Polymarket is rolling out Protocol V2, a rebuilt smart contract system intended to support new market features and potential expansion across multiple blockchains.
The platform began the rollout on Monday, with testing on a limited number of live markets through October 30, according to Rajath Alex, Polymarket's head of protocol. The company has set a tentative November 2 target for migrating new markets to V2.
New Infrastructure Replaces 2019 Foundation
The overhaul replaces smart contract infrastructure based on code from 2019 that required additional contracts to support different market types. Protocol V2 consolidates this architecture into a single exchange supporting multiple market types, reducing deployment complexity.
pUSD as Primary Collateral
Protocol V2 uses Polymarket USD (pUSD) as its sole collateral token. Introduced in April 2026 as part of an exchange upgrade, pUSD is backed 1:1 by Circle's USDC stablecoin. The new protocol uses a single contract for position tokens alongside the unified exchange.
Cross-Chain Capability in Development
The protocol is designed to support transferring positions, collateral, and market outcome data between blockchains, though Polymarket has not announced specific launch timelines or which networks will be supported. Polymarket currently operates its markets on Polygon, an Ethereum scaling network where pUSD is issued.
Enhanced Governance and Security
Protocol V2 introduces upgradeable smart contracts that allow Polymarket to modify contracts through a "secure governance process," reducing the need to deploy additional contracts for new features. The system also introduces OracleAggregator, designed to connect to multiple oracles including UMA and Chainlink to determine market outcomes.
The new protocol underwent audits by blockchain security firms Cantina, Quantstamp, and Zellic, along with formal verification by Certora. Polymarket is offering bug bounty rewards of up to $5 million for critical vulnerabilities.
User Migration
Existing positions will not be automatically converted to V2. App and website users will not need to take technical steps to migrate, though they may be asked to approve new contracts when trading.
