Polymarket has started testing Protocol V2 in a production environment. According to protocol head Rajat Alex (October 5), the canary markets will operate until October 30, after which new markets will "preliminarily" transition to V2 starting November 2.
V2 replaces the 2019 Gnosis Conditional Tokens Framework architecture with a unified ERC-1155 position system, shared collateral pUSD, and modular resolution. This is not the same as CLOB v2 (April 2026 update): Protocol V2 changes the infrastructure of positions and markets underlying the trading system. pUSD is an ERC-20 token that wraps USDC and USDC.e at a 1:1 ratio through an external vault. A lot changes for developers: V2 balances are stored in a new PositionManager, splits, merges, and redemptions go through the Router. Existing CTF approvals do not carry over – integrations require new permissions. Old CTF positions remain unchanged and do not convert automatically.
Market resolution has been reworked through OracleAggregator, which connects reporter, dispute, and arbitration modules. Current reporters include UMA Optimistic Oracle, Chainlink reporter, and EOA reporter. UMA is responsible for event resolution, Chainlink handles price resolution through Data Streams. The transport layer for positions, collateral, and outcomes uses Chainlink CCIP; Polygon remains the resolution hub. V2 audits were conducted by Cantina, Certora, Quantstamp, Pashov, Sigma Prime, and Zellic. Critical vulnerabilities in the bug bounty program are valued up to $5 million. A separate migration awaits the Data API: V1 will be shut down on October 24, 2026. V2 consolidates position routes into /v2/positions, adds PnL, volume, price history, resolutions, and service status, while cursor pagination removes the limit of 10,000 rows. Regular users do not need technical migration.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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