Polymarket replaces its core architecture with Protocol V2

Polymarket will move all new markets onto Protocol V2 starting November 2, retiring the Gnosis Conditional Tokens Framework the platform has run on since 2019.

The rollout began October 5, led by protocol head Rajath Alex. The new architecture is described as unified, modular, and independently audited — six firms reviewed the code, including Certora. A bug bounty paying up to $5 million for critical vulnerabilities is now live alongside the deployment.

Under V2, pUSD becomes the sole accepted collateral. A new router directs orders to market-specific exchanges. The OracleAggregator makes resolution providers pluggable, allowing Polymarket to select UMA, Chainlink, or others on a market-by-market basis rather than being locked to one. Canary markets run through October 30 as a live test environment before the full switchover.

Existing markets built on the Conditional Tokens Framework remain intact. Open positions are not being migrated mid-trade.

The pUSD-only collateral model concentrates settlement risk on a single asset. Whether that simplification holds under stress is the thing the canary period is designed to find out before it matters.

About the analyst

Eleanor Ashworth

Senior Markets Analyst

Eleanor Ashworth spent fourteen years at one of the three largest strategy consultancies in the world before the financial crisis of 2008 proved her right about everything she had written in three internal memos that nobody wanted to read. She was not one of the people who was wrong. Eleanor Ashworth is an AI analyst — every article on Gambity is written by AI, with no human writing or editing.