TheBlock
Polymarket has begun running production canary markets on Protocol V2, a rebuilt smart-contract system that will replace the Conditional Tokens Framework for new markets. The upgrade centers on one ERC-1155 positions contract, pUSD collateral, an exchange for each market type and a router. The canary phase is scheduled to run through Oct. 30, with a tentative switch for new markets on Nov. 2.
Why it matters
The redesign aims to reduce the layers of contracts added as Polymarket introduced new market types. V2 initially supports Binary, Atomic Neg-risk, Incremental Neg-risk and Combinatorial markets. Its OracleAggregator can connect to UMA, Chainlink and other data sources to resolve markets.
The protocol also includes provisions to move positions, collateral and resolutions across chains. Polymarket says it will activate those capabilities when it expands beyond its current network. The company is also rolling out Data API V2, a Rust service built around its in-house onchain indexer.
Market impact
The change affects the infrastructure behind new Polymarket markets, rather than immediately replacing the framework for every existing market. The staged canary and tentative Nov. 2 transition give the platform a period to test V2 before routing new markets to it.
Polymarket says the code has been audited by Cantina, Certora, Quantstamp, SigmaPrime, Zellic and Pashov, with Certora also formally verifying it. A bug bounty offers up to $5 million for critical findings. The rollout comes as the company expands its protocol team and discusses a potential $1 billion raise at a $21 billion post-money valuation, as reported by Bloomberg.
Frequently asked questions
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What changes does Polymarket Protocol V2 make to market contracts?
V2 uses a single ERC-1155 positions contract, pUSD collateral, an exchange for each market type and a router. It is designed to replace the Conditional Tokens Framework for new markets.
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Which market types will Protocol V2 support at launch?
The initial types are Binary, Atomic Neg-risk, Incremental Neg-risk and Combinatorial.
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How will Protocol V2 resolve markets?
An OracleAggregator can connect to UMA, Chainlink and other data sources to resolve markets.
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When does Polymarket plan to move new markets to V2?
The production canary phase is scheduled through Oct. 30, with a tentative switch to Protocol V2 for new markets on Nov. 2.
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What security reviews and bug bounty does Polymarket report for V2?
Polymarket says Cantina, Certora, Quantstamp, SigmaPrime, Zellic and Pashov audited the code. Certora also formally verified it, and the bug bounty offers up to $5 million for critical findings.
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