Polymarket tests V2 with one positions contract and pUSD

Polymarket has begun testing Protocol V2 on live markets, bringing positions into one contract and using pUSD as collateral ahead of a planned switch for new markets. The upgrade could make it easier for the platform to support different market types. The Block reported that protocol lead Rajath Alex announced the tests on Monday.

V2 replaces the platform’s older system, built on Gnosis code from 2019. Its positions contract uses ERC-1155, a token standard that can represent different types of assets in one contract. The redesign also includes a separate exchange for each market type and a router, which directs transactions between contracts.

Which markets will the new system support?

V2 is set to start with four types: Binary, Atomic Neg-risk, Incremental Neg-risk and Combinatorial. Neg-risk markets let traders combine related outcomes; the other two names refer to formats for setting up markets and outcomes.

The upgrade also adds an OracleAggregator, a system for connecting to services that report market outcomes. Polymarket says it can connect to UMA, Chainlink and other data sources. The Block reported that the system has provisions for moving positions, collateral and resolution data between blockchains, but Polymarket has not said when it will activate that feature.

When will new markets move to V2?

The live tests are due to run through Oct. 30. Alex gave Nov. 2 as a tentative date to switch newly created markets to V2, according to The Block. That date is a target, not a confirmed launch date.

V2 uses Polymarket USD (pUSD) as its only collateral token. pUSD is backed one-to-one by USDC, according to The Block’s report. The token had already been introduced in Polymarket’s April exchange upgrade.

Do existing positions move to the new contracts?

No. Polymarket’s Protocol V2 migration guide says existing Conditional Tokens Framework holdings will not be converted. App and website users do not need to make a technical migration, though the guide says they may see approval prompts when trading on V2.

That means the November target applies to new markets, while existing positions remain on the current system. Builders and traders using integrations will need to support V2’s new position IDs and contracts alongside the older system.

References

• The Block reported — theblock.co
• Protocol V2 migration guide — docs.polymarket.com