Polymarket rolls out V2 upgrade with single ERC-1155 positions contract

Polymarket begins rolling out Protocol V2, a major smart contract overhaul replacing its 2019 Gnosis-based infrastructure with a single ERC-1155 positions contract and pUSD collateral. The upgrade, currently in testing on canary markets until October 30, 2026, introduces upgradeable contracts and cross-chain compatibility. Amid this technical transition, Polymarket is expanding its leadership team and is reportedly in talks to raise $1 billion at a $21 billion valuation.

Rollout timeline for protocol V2

• ▪Polymarket is testing Protocol V2 on live canary markets through 30 October 2026, with a tentative target of 2 November 2026 to switch new markets to the upgraded protocol
• ▪Polymarket began rolling out Protocol V2 on 5 October 2026, replacing its Gnosis-based Conditional Tokens Framework with a single ERC-1155 positions contract

New protocol features

• ▪Polymarket Protocol V2 introduces OracleAggregator, a system designed to connect to different oracles, including UMA and Chainlink, to determine market outcomes
• ▪Polymarket Protocol V2 introduces upgradeable smart contracts that can be modified through a secure governance process, reducing the need to deploy additional contracts for new features
• ▪Polymarket Protocol V2 is designed to support transferring positions, collateral, and market outcome data between blockchains, though Polymarket has not announced when this cross-chain functionality will launch

Polymarket USD collateral

• ▪Polymarket introduced its Polymarket USD collateral token in April 2026 as part of an exchange upgrade
• ▪Polymarket Protocol V2's sole collateral token is Polymarket USD (pUSD), backed 1:1 by Circle's USDC and issued on Polygon, an Ethereum scaling network where Polymarket currently operates prediction markets

Security audits and bug bounty

• ▪Polymarket is offering bug bounty rewards of up to $5 million for critical vulnerabilities or findings in its Protocol V2 code
• ▪Polymarket Protocol V2 underwent security audits by platforms including Cantina, Quantstamp, Zellic, SigmaPrime, and Pashov, with Certora performing formal verification on its smart contract code

Team expansion

• ▪Rajath Alex joined Polymarket in May 2026, nearly three months before Polymarket hired Travis VanderZanden
• ▪Polymarket hired former Bird founder Travis VanderZanden as chief growth officer and Rajath Alex as protocol lead in 2026 amid Polymarket's team expansion

Debatable claims

• ▪Polymarket should remain exclusive to the Polygon network to prevent liquidity fragmentation
• ▪Polymarket's OracleAggregator is a safer resolution mechanism than relying on a single oracle network
• ▪Polymarket's transition to upgradeable smart contracts compromises its core decentralization
• ▪Polymarket's introduction of pUSD collateral adds unnecessary smart contract risk for traders