Polymarket has introduced Protocol V2, the next version of its prediction market protocol, replacing the legacy Gnosis Conditional Tokens Framework with a single ERC1155 position contract and a unified structure for collateral, exchange execution, and routing.
Rajath Alex, Polymarket’s protocol lead, formally announced the release on X on Oct. 6. According to the company, this is the first full rebuild of the protocol’s underlying smart contract infrastructure since Polymarket began developing it in-house.
Single ERC1155 contract replaces adapter-heavy design
The earlier version of the protocol relied on Gnosis’s 2019 Conditional Tokens Framework, or CTF. Under that setup, each new market type required another adapter layer. That included a pUSD adapter, wrapped collateral tokens for negative-risk positions, a second exchange, and even separate UMA modules for each adapter.
Polymarket said the system worked, but every new feature added another layer, another approval step, and another contract that could not be changed after deployment.
Protocol V2 rebuilds that structure from the ground up. At its core is a single ERC1155 position contract paired with unified pUSD collateral, one exchange, and one routing path. Each position ID contains the market type, market, and outcome data natively, allowing the protocol to read that information directly without extra query contracts.
The first batch supports four market types: binary, atomic negative risk, incremental negative risk, and parlay markets. Polymarket said each module also supports extended primitive operations designed to improve capital efficiency.
Cross-chain bridging becomes a native protocol feature
Unlike the previous version, V2 treats cross-chain bridging as a first-class feature. From the outset, it supports moving positions, collateral, and resolution outcomes across chains. Polymarket has not yet disclosed a launch timeline for multichain deployment, but said the underlying infrastructure is already in place.
The upgrade also adds a new OracleAggregator module to unify the resolution layer. It is compatible with both UMA and Chainlink oracles, giving the protocol more flexibility in how markets are settled.
The protocol itself supports governance upgrades, which Polymarket said would let the development team ship new features without disrupting existing users.
Audits, bug bounty, and rollout timeline
Polymarket said the new protocol has been audited by Cantina, Certora, Quantstamp, SigmaPrime, Zellic, and Pashov. Certora also completed formal verification.
The bug bounty program offers up to $5 million for critical vulnerabilities. A canary market went live on Oct. 5, and the trial period will run through Oct. 30. New markets are expected to move to V2 starting Nov. 2, while existing CTF markets and positions will remain unaffected.
Data API V2 released alongside the protocol upgrade
Alongside the protocol launch, Polymarket also released its in-house on-chain indexer, Data API V2. Built in Rust, it supports the V2 protocol, standardized response formats, and cursor-based pagination. The company said trade and activity streams remain consistent as new records are added.
Integrators still using Data API V1 will need to follow the migration guide and move over accordingly.