Polymarket has initiated production testing of its new Protocol V2 architecture, which replaces the legacy Conditional Tokens Framework. The testing phase for the updated system is scheduled to run from October 5 to October 30. Starting November 2, the platform plans to launch all new prediction markets exclusively on the V2 infrastructure.
The new modular architecture centers on the ERC-1155 PositionManager contract, which encodes position details directly into token IDs. This design eliminates the need for repeated storage lookups. The system utilizes pUSD as the primary collateral asset, which is backed 1:1 by USDC or USDC.e. Cross-chain operations are supported via Chainlink CCIP.
The V2 codebase underwent security audits by firms including Cantina, Certora, and Quantstamp. Polymarket has established a bug bounty program with a maximum reward of $5 million for critical vulnerabilities. The platform also introduced a new Data API V2 written in Rust, which leverages a proprietary on-chain indexer for improved data retrieval.
The migration process will be gradual, as existing positions based on the older framework will not be automatically converted. However, the system includes a dedicated mechanism for users to migrate legacy positions to the new architecture. Standard users of the website and application will not need to perform manual technical migrations.
