Polymarket Rebuilds Its Core With Protocol V2 And pUSD Collateral

Introduction

Polymarket has begun testing its new Protocol V2, a major rebuild of its smart contracts, which consolidates markets around a unified exchange system and pUSD collateral. The new architecture simplifies interactions between markets, positions, collateral, and settlement, and is designed to support different market types through a common system.

Current Infrastructure

The existing infrastructure grew over time around a collection of contracts and extensions. V2 moves toward a more unified structure capable of supporting different market types through a common system. One of the most visible changes is collateral. The new architecture standardizes around pUSD, giving new markets a common collateral asset rather than relying on the older arrangement.

Consolidation and Upgrade

Positions are also being consolidated through a shared token framework, while routing and oracle components are being reorganized to make new market types easier to support. A limited set of canary markets is being used to test the V2 contracts in live conditions through October. The current schedule calls for that testing phase to run until October 30, with November 2 targeted as the point at which new markets begin moving fully to the updated system.

Benefits and Implications

Existing markets do not simply disappear. Legacy positions can continue to settle under the infrastructure on which they were created. That phased approach reduces the risk of forcing open markets through a contract migration while funds and positions remain active. The overhaul arrives as prediction markets continue to expand beyond a niche crypto product. Platforms such as Polymarket now attract substantial attention around elections, macroeconomic events, technology, sports and breaking news.