Polymarket began the phased rollout of Protocol V2 on Monday, testing the new smart contract system on a limited number of live markets until October 30. The platform is targeting November 2 to migrate new markets to V2; existing positions will remain on the current system.

pUSD to Become the Sole Collateral Token

Protocol V2 uses Polymarket USD (pUSD) as its only collateral token. pUSD is backed 1:1 by Circle’s USDC stablecoin and was introduced in April 2026 as part of the exchange upgrade. The new protocol consolidates the issuance of position tokens into a single contract and supports different market types through a unified exchange. The architecture is designed to enable the transfer of positions, collateral, and outcome data across blockchains, though timelines and supported networks have not been announced. Polymarket currently operates on the Polygon network, where pUSD is issued.

Upgradeable Contracts and OracleAggregator

V2 introduces upgradeable smart contracts with a “secure governance process,” reducing the need to deploy new contracts when adding features. The new OracleAggregator module connects to various oracles, including UMA and Chainlink, to determine market outcomes. The update also replaces infrastructure based on 2019 code, which required additional contracts for new market types.

Audits and Bug Bounty up to $5M; No User Migration Required

Polymarket reported that Cantina, Quantstamp, and Zellic audited the system, and Certora performed formal verification. Rewards of up to $5 million are offered for critical vulnerabilities. According to the Protocol V2 migration guide, existing positions will not be converted to V2. Users of the app and website will not need to take technical steps to transition, though approval of new contracts may be required when trading.