Polymarket released Protocol V2, planning to switch to a new market in November

The prediction market platform Polymarket has announced the launch of Polymarket Protocol V2, calling it the next-generation prediction market smart contract system. The existing contracts are based on the conditional token framework from Gnosis in 2019, with various markets subsequently integrated through additional adapters. V2 rebuilds position tokens from scratch, using a single ERC1155 position contract, a single collateral pUSD, a single exchange, and a single routing, with position IDs directly encoding market type, market, and outcome.

V2 supports binary, atomic negative risk, incremental negative risk, and composite markets with a modular architecture, and expands position operations to enhance capital efficiency. Settlement is accessed through OracleAggregator, integrating pluggable oracles, including UMA, Chainlink, and future sources. The protocol features built-in cross-chain bridging designs for positions, collateral, and settlement, and can be upgraded through governance processes. Future research directions include scalar settlement and directional collateral return.

The code has been audited by Cantina, Certora, Quantstamp, SigmaPrime, Zellic, and Pashov, and has undergone formal verification by Certora, with a maximum critical vulnerability bounty of $5 million. The canary market will operate in the production environment from today until October 30, with new markets tentatively scheduled to switch on November 2. At the same time, Data API V2 will be launched, based on a self-developed on-chain indexer, supporting V2, unified response formats, and cursor pagination.