Polymarket plans Nov. 2 shift for new markets under Protocol V2

Polymarket has unveiled Protocol V2, a rebuilt architecture for its prediction markets, and plans to route all new markets to it from Nov. 2. Existing markets based on the Conditional Tokens Framework, or CTF, will continue operating without a forced mid-trade migration.

The Oct. 5 announcement began a canary-testing period that runs through Oct. 30. The new protocol replaces the Gnosis Conditional Tokens Framework foundation that Polymarket has used since 2019, an arrangement under which each new market type required its own adapter contract, adding approvals, integrations and immutable contracts.

V2 places every outcome share in one ERC-1155 positions-token contract, called PositionManager. Position identifiers encode the market type, market and outcome. The system also uses market-specific exchanges and a Router, which directs orders to the appropriate exchange and is required to create or redeem split and combined V2 positions.

The new markets will use pUSD as their sole collateral asset. Polymarket’s technical documentation describes pUSD, also called PMCT or Polymarket USD, as a six-decimal ERC-20 token that wraps USDC and USDCe at a one-to-one ratio through an external vault. The stated backing requirement is that USDC and USDCe held in that vault must at least equal total pUSD supply.

Users can wrap and unwrap the collateral token without permission through the CollateralOnramp and CollateralOfframp contracts. However, V2 interactions may require fresh token approvals because allowances for CTF positions do not transfer to PositionManager.

The upgrade also introduces an OracleAggregator intended to allow different resolution providers. UMA and Chainlink are the first oracle sources, while the wider resolution system includes UMA’s Optimistic Oracle, Chainlink and externally owned-account reporting.

For developers, the transition is less seamless than it is for ordinary users. Applications will need to support both the older and new integrations while CTF markets remain open. Data API v1 is scheduled to be discontinued on Oct. 24, requiring migration to V2 routes, response formats and cursor-based pagination. Data API v2 uses an in-house on-chain indexer and standardized data formats.

Six firms, including Certora, audited V2. Its bug-bounty programme offers rewards of up to $5 million for critical protocol vulnerabilities.