Staff Infrastructure Engineer

Polymarket rolls out V2 upgrade with single ERC-1155 positions contract, pUSD collateral. Polymarket is testing a rebuilt smart-contract system with four market types and new oracle infrastructure. Business - October 6, 2026, 10:35AM EDT Quick take. * The new protocol supports four market types and consolidates positions, pUSD collateral, exchanges, and routing into a redesigned architecture. Polymarket has begun running production canary markets on a rebuilt smart-contract system that will replace the Conditional Tokens Framework for new markets, protocol lead Rajath Alex announced on Monday. Dubbed Protocol V2, the upgrade replaces the 2019 Gnosis-based framework with a single ERC-1155 positions contract, pUSD as collateral, one exchange for each market type, and a router. The redesign aims to reduce the layers of contracts that have been added as the platform introduced new market types, Alex said in an X post. According to the post, V2 will initially cover four market types, including 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 upgraded protocol also has provisions for moving positions, collateral, and resolutions across chains, a feature Polymarket says it will activate when it expands beyond its current network. Alex said the canary markets will run through Oct. 30, with a tentative switch to Protocol V2 for net-new markets on Nov. 2. The company is also rolling out Data API V2, a Rust service built around its in-house onchain indexer. The upgrade comes as Polymarket has been adding senior talent and building out its protocol team amid expansion. 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.

Polymarket overhauls smart contracts with new Protocol V2 rollout. Polymarket 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. 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. 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. Get more of Cointelegraph on Google Add Cointelegraph as a preferred source for Google Search. Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph's Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Polymarket V2 could change how users bet on events. Oct 5, 2026 at 10:35 PM PDT Polymarket has begun production testing of Protocol V2 ahead of a tentative Nov. 2 switch for newly created markets, replacing its 2019-era Gnosis CTF market architecture with a single ERC-1155 position system, pUSD collateral and modular resolution. * Polymarket Protocol V2 will start handling new markets on November 2 after October canary testing. * V2 replaces legacy Gnosis CTF adapters with one ERC-1155 position system and unified pUSD collateral. * UMA and Chainlink can feed outcomes through Polymarket's new modular OracleAggregator settlement layer for markets. * Polymarket says existing CTF holdings will remain unchanged while new V2 positions use separate contracts. * Data API V1 retires October 24, giving developers nine days before the planned V2 switchover. Polymarket protocol head Rajath Alex said on Oct. 5 that canary markets would run in production through Oct. 30 before net-new markets "tentatively" begin moving to Protocol V2 on Nov. 2. Existing CTF markets and positions will not automatically migrate to the new contracts. Polymarket V2 rebuilds how positions are created. Polymarket's existing market system traces back to Gnosis' Conditional Tokens Framework from 2019. As new market formats were introduced, separate adapters and contracts were added for functions including negative-risk markets, collateral handling and resolution. Protocol V2 removes much of that structure. Polymarket's official code repository describes V2 as its "next-generation prediction market smart contract system," with ERC-1155 position tokens, collateral handling, modular oracles, order matching and cross-chain functions. Position IDs now encode information including the module, condition and outcome directly into the token identifier. The system uses a common PositionManager contract and Router, with separate modules handling different market structures. The initial modules cover binary markets, atomic negative-risk markets, incremental negative-risk markets and combinatorial markets. Polymarket's published Polygon deployment list shows the PositionManager, Exchange, Router and each of those modules already deployed on mainnet. The October release should not be confused with Polymarket's earlier CLOB v2 upgrade. As previously reported in crypto.news coverage of Polymarket's CLOB v2 rollout, the April upgrade changed exchange contracts, the matching engine and collateral while introducing pUSD for trading. Protocol V2 changes the position and market infrastructure underneath that trading system. pUSD becomes the common collateral across V2 markets. Polymarket Protocol V2 uses Polymarket USD, or pUSD, as its common collateral asset across the new market modules. Official contract documentation states that pUSD is an ERC-20 token wrapping USDC and USDC.e at a 1:1 ratio through an external vault. The code requires the combined USDC and USDC.e held by the vault to equal or exceed the outstanding pUSD supply. The token itself is not new. pUSD arrived with the exchange changes earlier in 2026, but Protocol V2 makes it the common collateral used by its market modules. Existing integrations already using pUSD do not need to replace their collateral setup when adding V2 support, according to Polymarket's migration guide. For developers, positions do change. V2 balances sit in the new PositionManager, while splits, merges and redemptions go through the Router. Existing CTF approvals do not carry over, so integrations need new permissions for V2 operations. Polymarket explicitly tells developers to keep CTF support for older markets and holdings. Its migration documentation says existing CTF holdings are not converted when an integration adds Protocol V2. UMA and Chainlink can settle markets through one layer. Resolution receives a separate redesign through the new OracleAggregator. Polymarket's V2 code shows that the OracleAggregator sits above pluggable reporter, dispute and arbitration modules. Current reporter contracts include an UMA Optimistic Oracle module, a Chainlink reporter and an EOA reporter. The UMA module can pass settled UMA outcomes into the aggregator as reporter votes. Chainlink's module handles price-based resolution using Chainlink Data Streams, according to the published contract documentation. Different reporter modules can be combined under thresholds set for individual markets. Polymarket had already introduced Chainlink for certain objective markets. In related crypto.news coverage of the Chainlink integration, the platform used Chainlink Data Streams and Automation to settle crypto price markets using external market data. UMA remains relevant for markets requiring event-based resolution. Crypto.news has separately documented how UMA resolves Polymarket prediction markets and how disputes can move through its challenge process. Protocol V2 does not simply replace UMA with Chainlink. Its OracleAggregator allows different resolution sources to plug into the same framework. The V2 contracts contain cross-chain infrastructure as well. Polymarket's bridge documentation states that positions, collateral and resolution results can move through a transport layer whose current implementation uses Chainlink CCIP. Polygon remains the resolution hub in the published mainnet design. No date has been announced for a multi-chain activation. The bridge code establishes the technical structure, but the Nov. 2 migration plan concerns new V2 markets and does not by itself announce trading on additional chains. Security checks cover the new Polymarket contracts. Polymarket has released a detailed security record for Protocol V2 before the planned migration. Its official contract-security repository lists reviews by Cantina, Certora, Quantstamp, Pashov, Sigma Prime and Zellic across major V2 components. The repository lists Certora formal verification work covering the Exchange, Collateral Token, Position Manager, Binary Module, NegRisk Module, Combinatorial Module and OracleAggregator. Alex said critical vulnerabilities remain eligible for rewards of up to $5 million under Polymarket's bug bounty program. The bounty was launched earlier in 2026 and covers smart contracts and other parts of the platform's technology stack. The canary period gives developers and market makers a production environment for testing before the planned Nov. 2 transition. Alex said the limited rollout runs from Oct. 5 through Oct. 30, with new markets expected to begin using V2 afterward if the schedule holds. Developers face an earlier October 24 deadline. A separate migration is already underway for Polymarket's Data API. Polymarket's official documentation says Data API V1 will retire on Oct. 24, 2026, requiring existing integrations to move to V2 routes before that date. The new system uses a shared response structure, cursor-based pagination and snake_case fields. Data API V2 consolidates several position routes into /v2/positions and adds endpoints covering user profit and loss, volume, price history, resolutions and service status. Cursor pagination removes the old 10,000-row offset limit used by V1. For regular app and website users, Polymarket says no technical migration is required. Users may encounter new approval prompts when interacting with V2 markets, while developers and smart-contract integrations need to support both V2 positions and legacy CTF holdings. The current schedule gives API developers until Oct. 24 to leave Data API V1, keeps Protocol V2 canary markets running through Oct. 30, and sets Nov. 2 as the tentative date when newly created markets begin using the V2 protocol.