Polymarket Starts Protocol V2 Canary Testing for New Markets

Polymarket began running a small group of live canary markets on Protocol V2 on Oct. 5, testing a rebuilt trading system before a tentative Nov. 2 transition for new markets. The canary period is scheduled to continue through Oct. 30.

V2 brings market positions into one ERC-1155 contract, uses pUSD as its only collateral and routes all market types through one exchange and router. Its four launch modules are binary, atomic neg-risk, incremental neg-risk and combinatorial.

Polymarket’s earlier system was built on Gnosis’ Conditional Tokens Framework, released in 2019. Over time, the platform added separate contracts for features including pUSD collateral and neg-risk markets.

A new OracleAggregator will manage market resolution and can connect to UMA, Chainlink and future oracles. The contracts are designed to support moving positions, collateral and resolutions to other chains; Polymarket plans to enable that capability as it expands beyond one network. V2 can also be upgraded through governance. Scalar resolution and directional collateral return are in development as follow-on features.

App and website users need to accept approval prompts to use the new system. Positions held under the old framework will not convert to V2. Developers and market makers have a four-week canary period, including weekly office hours, to integrate.

The code was audited by Cantina, Certora, Quantstamp, Sigma Prime, Zellic and Pashov Audit Group, and Certora also formally verified it. The bug bounty offers up to $5 million for critical findings. The canary period is scheduled to end Oct. 30, with the tentative transition for new markets set for Nov. 2.