Polymarket V2 Nears Launch With New Prediction Market Architecture

Polymarket began testing its Protocol V2 with planned implementation for new markets as early as November 2. Protocol lead Rajath Alex said that canary markets will be available until October 30.

Existing applications will not seamlessly transition to the new version. Production canaries are meant to help evaluate the V2 protocol. Old Gnosis Conditional Tokens Framework-based jobs will continue to be supported. Integrations with the old and new versions will be needed.

Polymarket V2 Rebuilds Positions Around ERC-1155 and pUSD

The Protocol V2 upgrade removes interface and adapter code added to the original CTF implementation from 2019. According to Polymarket, Protocol V2 is a single smart contract that provides functionality for ERC-1155 wager assets, trade execution, and other features, including interoperability with other chains.

Under V2, addresses for positions include information about the token, price, and position in the token ID. A shared PositionManager and Router provide other functions. Other modules offer binary, atomic negative-exposure, incremental negative-exposure, and other types of market functions.

The upgrade differs from the CLOB V2 upgrade. Protocol V2 redesigns the infrastructure through which users can open and manage positions in markets.