Polymarket has begun running production canary markets on a rebuilt smart-contract system called Protocol V2, replacing its 2019 Gnosis-based framework with a single ERC-1155 positions contract and pUSD collateral. The upgrade adds new oracle infrastructure for four market types and targets a full switch for new markets on Nov. 2.
Polymarket has begun running production canary markets on a rebuilt smart-contract system that will replace its 2019 Conditional Tokens Framework for new markets, protocol lead Rajath Alex announced on Monday.
A Single Contract Replaces Added Layers
Dubbed Protocol V2, the upgrade swaps the Gnosis-based framework for a single ERC-1155 positions smart contract, pUSD as collateral, one exchange for each market type, and a router. Alex said the redesign aims to cut the layers of contracts the platform had added as it introduced new market types.
Four Market Types, New Oracle Infrastructure
According to Alex, V2 will initially cover four market types: Binary, Atomic Neg-risk, Incremental Neg-risk, and Combinatorial. Polymarket is introducing an OracleAggregator that can plug into UMA, Chainlink, and other data sources to resolve those markets. The protocol also carries provisions for moving positions, collateral, and resolutions across chains, a feature the company says it will activate once it expands beyond its current network.
Canary Run Through Late October
Alex said the canary markets will run through Oct. 30, with a tentative switch to Protocol V2 for net-new markets on Nov. 2. Polymarket is also rolling out Data API V2, a Rust service built around its in-house onchain indexer.
Upgrade Lands Amid Hiring and a Funding Push
The rebuild comes as Polymarket adds senior talent and builds out its protocol team. Alex joined in May, nearly three months before the company hired Travis VanderZanden, the founder of Bird and a former Uber and Lyft executive, as chief growth officer. The company is also in talks to raise $1 billion at a $21 billion post-money valuation, with venture firm 1789 Capital set to contribute about $300 million, Bloomberg reported.
Polymarket said the V2 code has undergone audits by Cantina, Certora, Quantstamp, SigmaPrime, Zellic, and Pashov, with Certora also formally verifying the code. Its bug bounty offers up to $5 million for critical findings.
Source: The Block
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