Polymarket overhauls smart contracts with new Protocol V2 rollout

Prediction market platform Polymarket is rebuilding its smart contract infrastructure, laying the groundwork for new market features and potential expansion beyond Polygon.

Polymarket began rolling out Protocol V2 on Monday, introducing a new smart contract system designed to support different market types through a single exchange, ​​according to an X post by Rajath Alex, the company’s head of protocol.

The platform is testing the system on a limited number of live markets through Oct. 30, with a tentative Nov. 2 target for switching new markets to V2.

The overhaul replaces infrastructure based on code developed in 2019 that requires additional contracts to support new market types.

New protocol uses pUSD as sole collateral token

Protocol V2 uses Polymarket USD (pUSD) as its sole collateral token, alongside a single contract for position tokens and one exchange supporting different market types.

Introduced as part of an exchange upgrade in April 2026, pUSD is a collateral token backed 1:1 by Circle’s dollar-pegged stablecoin, USDC.

The new protocol is designed to support transferring positions, collateral and market outcome data between blockchains, although Polymarket has not announced when cross-chain functionality will launch or which networks it will support.