Polymarket has unveiled Polymarket Protocol V2, a full rewrite of the smart contracts behind its prediction markets. Head of Protocol Rajath Alex announced the upgrade on October 5 and set November 2 as the tentative date for new markets to move onto the system. Existing markets, balances, and positions will remain on the current infrastructure during the planned transition period.
The new system replaces the Gnosis Conditional Tokens Framework that Polymarket has used since 2019. Over time, each new market type required more adapters and contracts around that base. Polymarket Protocol V2 brings those functions into a more unified design.
What Changes Under Polymarket Protocol V2?
PositionManager is another component of the update – one ERC-1155 smart contract that holds the outcome positions. In turn, each ID can have the module name, the market condition, and the outcome embedded in the token itself, which makes additional storage and adapter calls unnecessary.
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Another significant improvement is the change in the market type linking to the protocol. While binary, negative risk, and combinatorial markets may have different modules, they will use the same underlying position model, reducing the complexity brought by multiple years of adoptions.
The Polymarket Protocol version V2 also adopts a unified collateral layer. Polymarket introduced pUSD earlier in 2026 as an ERC-20 token on Polygon backed one-to-one by USDC. The version 2 of the architecture uses it in the contract architecture itself.
Trading goes through the exchange contract and the router. The router directs the actions to the market module and performs such actions as splits, mergers, and redemptions. The router adds one routing layer to the market structure.
How Does V2 Change Market Resolution?
The Polymarket Protocol Version 2 has implemented an OracleAggregator for settlement. The smart contract lets various oracle modules report settlements using a single module framework. The public repository provides oracle modules for both optimistic settlement in a UMA style and Chainlink settlement.
Such an approach enables the separation of the settlement algorithm from the main position smart contract. New oracle modules may be integrated without having to rebuild PositionManager smart contract. Thus, each market could utilize a different settlement method under the same architecture.
In the Polymarket public repository, there is a list of the V2 contracts deployed on Polygon. There are contracts for the exchange, router, collateral system, OracleAggregator, and market modules.
When Will Polymarket Protocol V2 Roll Out?
Production canary markets have begun on October 5 and are slated to continue until October 30. The broad rollout for net-new markets is slated to begin on November 2. This depends on the deployment timeline.
Currently existing CTF markets will retain the old system. Neither open positions nor balances will be transferred to Polymarket Protocol V2. Consequently, developers will need to support both systems in the meantime.
There is also a prior data migration. The current version of Polymarket’s Data API is slated to be retired on October 24. All integrations that use it will have to transition to Data API V2.
The updated version of the API employs cursor-based pagination in place of the old offset system. It unites position routes from previous versions and introduces new endpoints such as user stats, volume, historical prices, resolutions, and status.
Why Is Polymarket Rebuilding Its Market Infrastructure?
Polymarket Protocol V2 solves the problem with a system that grew through additional adapters in a few years. The rewritten version builds a common infrastructure for positions, market modules, collateral management, routing, and resolution. The system also improves the architecture for creating new types of markets.
Security audits are included in the release process as well. According to Alex, Cantina, Certora, Quantstamp, Sigma Prime, Zellic, and Pashov have audited all the contracts. According to the announcement, Certora has verified the key parts of the contract formally.
The launch in November is restricted to only new markets if the schedule remains unchanged. All legacy markets will use an older CTF stack until they stop functioning. Polymarket Protocol V2 thus starts working together with an older protocol rather than replacing all the markets at once.
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