Polymarket has introduced Protocol V2, a new core architecture designed to replace the Gnosis Conditional Tokens Framework used by the platform since 2019. The rollout of the updated system began on October 5, 2026, under the leadership of protocol head Rajath Alex.
The V2 architecture utilizes the ERC-1155 token standard, allowing a single contract to manage multiple token types. Under this new model, pUSD serves as the exclusive collateral for all positions, a change intended to simplify accounting and settlement processes.
The protocol features a new router system for order management and an OracleAggregator that supports multiple providers, including UMA and Chainlink. This allows the platform to select specific resolution sources for different markets.
Developers now have access to Data API v2, which operates on an in-house on-chain indexer. This tool allows the platform to organize blockchain data independently, reducing reliance on external services for building analytics and trading tools.
Security measures for the upgrade include audits by six firms, such as Certora. Additionally, the company has launched a bug bounty program that offers rewards of up to $5 million for the discovery of critical vulnerabilities.
The transition period includes a series of test markets running from October 5 through October 30. Starting November 2, all new markets will operate on Protocol V2, while existing markets will remain on the previous framework.
