PUSD to Become Standard Collateral as Polymarket Deploys New Framework

What happened

Polymarket has started production canary testing for Protocol V2, a rebuild of the contracts behind its prediction markets. Testing began on October 5, 2026, and the trial is set to end on October 30. The platform says V2 entered live testing with a new smart-contract design meant to simplify markets, positions and settlement.

The rollout happens in stages, not as a full migration of the platform. New market creation is targeted to move to V2 on November 2, though the platform says the timeline could change. Only newly created markets would be affected in November. Legacy positions can keep settling under their original infrastructure.

Under V2, pUSD becomes the collateral token for new markets. pUSD is a 1:1 wrapper for USDC and USDC.e. V2 puts all position tokens into a single ERC-1155 contract, creating one standard for outcome shares. Four market modules are live on Polygon mainnet.

Why it matters

Standardizing collateral and positions could simplify integrations and support more complex market types. V2 standardizes around pUSD, so new markets share one collateral asset instead of several older options. The design also groups positions under a shared token framework. It reorganizes routing and oracle components so new market types are easier to support.

The phased approach lowers migration risk for open markets. Existing CTF-denominated positions are unaffected, and Polymarket says it will not force active markets to migrate. The deployment is staged rather than a full-platform migration.

Resolution also changes under V2. The OracleAggregator supports three reporter types, including UMA, Chainlink and direct reporting. Six independent auditors reviewed the V2 codebase for Polymarket.

What the data shows

• Canary testing runs from October 5 to October 30.
• New markets are targeted to move to V2 from November 2.
• pUSD is a 1:1 wrapper for USDC and USDC.e.
• V2 launches with four market modules on Polygon mainnet.
• Three reporter types are supported by the OracleAggregator.
• Six independent auditors reviewed the V2 codebase.
• All position tokens are consolidated under a single ERC-1155 contract.

Background

• The older infrastructure used the Gnosis Conditional Tokens Framework, first deployed in 2019.
• pUSD arrived earlier in 2026 through prior platform enhancements.
• The audit firms included Cantina, Certora, Quantstamp, Pashov, Sigma Prime and Zellic.
• V2 contracts have preliminary support for cross-chain operations through Chainlink's CCIP protocol.

What is still unclear

• The rollout details do not set out a broader migration timetable for existing markets.
• The available details do not say which source would resolve any particular market or how source selection would work in practice.
• No launch date has been announced for multi-chain markets.

Questions readers ask