Polymarket has launched Polymarket Protocol V2, describing it as a next-generation smart contract system for prediction markets. According to ChainCatcher, the new protocol rebuilds position tokens from scratch around a single ERC1155 position contract, a single collateral asset called pUSD, a single exchange, and a single router.

The modular design supports binary, atomic negative-risk, incremental negative-risk, and combinatorial markets, while expanding position operations to improve capital efficiency. Settlement uses OracleAggregator to connect plug-in oracles, including UMA and Chainlink, with additional sources planned.

The protocol also includes cross-chain bridging for positions, collateral, and settlement, and can be upgraded through governance. Future development plans include scalar settlement and directional collateral return.

The code has been audited by Cantina, Certora, Quantstamp, SigmaPrime, Zellic, and Pashov, and Certora completed formal verification. The protocol also includes a bug bounty program with a top reward of up to $5 million.

A canary market is running in production from now until October 30, with new markets scheduled to switch on November 2. Data API V2 is also going live, using an in-house on-chain indexer and supporting V2, a unified response format, and cursor-based pagination.