Polymarket launches Protocol V2 to overhaul smart contract infrastructure

Polymarket has announced the launch of Protocol V2, a comprehensive rebuild of its underlying smart contract infrastructure. The new protocol replaces the legacy Gnosis Conditional Tokens Framework (CTF) used since 2019 with a unified architecture centered on a single ERC-1155 position token contract.

This architectural shift aims to improve efficiency by consolidating collateral (pUSD), exchanges, and routing into a single system. Unlike the previous layered structure that required separate adapters for different market types and oracles, the V2 design allows the protocol to read market and outcome metadata directly from position IDs. The new system natively supports binary, atomic negative-risk, incremental negative-risk, and combinatorial markets.

Key features of the upgrade include native cross-chain bridging capabilities and a new OracleAggregator module compatible with both UMA and Chainlink. To ensure security, the protocol has undergone audits by firms including Certora, Quantstamp, and Zellic, with a bug bounty program offering up to $5 million for high-risk vulnerabilities.

A four-week canary testing period is currently underway from October 5 to October 30. A full transition for new markets is tentatively scheduled to begin on November 2, though existing CTF markets and positions will remain unaffected.