Polymarket tests V2 market system ahead of tentative Nov. 2 shift

Polymarket has started testing Protocol V2 in production canary markets, rebuilding how new markets hold positions, use collateral and resolve outcomes. The Block’s report on the rollout says the new system replaces Polymarket’s Gnosis-based Conditional Tokens Framework with one ERC-1155 positions contract, pUSD collateral, market-specific exchanges and a router.

The change is not a switch for every existing market. Protocol lead Rajath Alex said the canary markets will run through Oct. 30. The tentative date for moving newly created markets to V2 is Nov. 2.

How does one positions contract handle different markets?

In V2, a position is represented through a single ERC-1155 contract. That token standard lets one contract manage different token types; here, the contract holds positions across several market types. The protocol initially supports Binary, Atomic Neg-risk, Incremental Neg-risk and Combinatorial markets, according to The Block.

Each market type has an exchange, and a router directs activity to the relevant exchange. Polymarket says the redesign is intended to reduce the extra contract layers that accumulated as it added market types. Think of the router as a switchboard: it sends each transaction to the market-specific route.

What happens to collateral and outcome resolution?

V2 uses pUSD as collateral for its positions. The system also adds an OracleAggregator, a layer that can connect to UMA, Chainlink and other data sources to resolve markets. The oracle layer supplies outcome information; the position contract represents the resulting market positions.

The four market types and the oracle connections make the protocol’s contract structure explicit: positions sit in one contract, trading goes through the exchange for that market type, and resolution can draw on different sources through the aggregator. The Block reports that the new protocol also has provisions for moving positions, collateral and resolutions across chains. Polymarket says it will activate that capability when it expands beyond its current network.

When could new markets move to V2?

The current canary run is a production test, not a completed migration. Alex said it is scheduled to continue through Oct. 30, followed by a tentative Nov. 2 switch for net-new markets. The dates leave a testing window before new markets begin using the rebuilt system; existing markets are not described as moving in this rollout.

Sources

• Block’s report on the rollout — theblock.co