Polymarket overhauls smart contracts with new Protocol V2 rollout
Written by Helen Partzstaff writerEdited by Yohan Yunstaff editorPolymarket begins its Protocol V2 rollout ahead of a planned November transition for new prediction markets, while existing positions remain on the current system.
Prediction market platform Polymarket is rebuilding its smart contract infrastructure, laying the groundwork for new market features and potential expansion beyond Polygon.
Polymarket began rolling out Protocol V2 on Monday, introducing a new smart contract system designed to support different market types through a single exchange, according to an X post by Rajath Alex, the company’s head of protocol.
The platform is testing the system on a limited number of live markets through Oct. 30, with a tentative Nov. 2 target for switching new markets to V2.
The overhaul replaces infrastructure based on code developed in 2019 that requires additional contracts to support new market types.
New protocol uses pUSD as sole collateral token
Protocol V2 uses Polymarket USD (pUSD) as its sole collateral token, alongside a single contract for position tokens and one exchange supporting different market types.
Introduced as part of an exchange upgrade in April 2026, pUSD is a collateral token backed 1:1 by Circle’s dollar-pegged stablecoin, USDC.
The new protocol is designed to support transferring positions, collateral and market outcome data between blockchains, although Polymarket has not announced when cross-chain functionality will launch or which networks it will support.
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Polymarket currently operates its prediction markets on Polygon, an Ethereum scaling network, where pUSD is also issued.
Cointelegraph reached out to Polymarket for details on which blockchains it plans to support and when the expansion could take place.
Upgradeable contracts support new features and oracles
Protocol V2 introduces upgradeable smart contracts, allowing Polymarket to modify contracts through a ”secure governance process,“ reducing the need to deploy additional contracts for new features.
It also introduces OracleAggregator, a system designed to connect to different oracles, including UMA and Chainlink, to determine market outcomes.
Related: Polygon discloses security flaws fixed in recent hard forks
Polymarket said the new system underwent audits by blockchain security platforms such as Cantina, Quantstamp and Zellic, as well as formal verification by Certora. The company is offering bug bounty rewards of up to $5 million for critical vulnerabilities.
According to the Protocol V2 migration guide, existing positions will not be converted to V2, and app and website users will not need to take technical steps to migrate, although they may be asked to approve new contracts when trading.
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