Canary

Oracle

Four

Polymarket

<p>Polymarket began production canary testing of Protocol V2 on October 5, putting its new trading architecture into a limited live trial ahead of a tentative November 2 switch for new markets. The test is scheduled to run through October 30, according to <a href="https://www.theblock.co/news/business/2026-10-06-polymarket-rolls-out-v2-upgrade-with-single-erc-1155-positions-contract-pusd-collateral-417804" rel="noopener noreferrer nofollow">The Block</a>.</p>
<p>The overhaul changes two elements of the prediction-market platform’s underlying stack: it unifies market positions under ERC-1155 and uses pUSD as collateral for the new architecture. The deployment is staged, not an announced full-platform migration, and the proposed November change would apply only to newly created markets.</p>
<h2 id="canary-testing-timeline">Canary testing timeline</h2>
<p>The canary phase is the production test window for V2, running from October 5 to October 30. If the proposed timetable holds, Polymarket would begin placing new markets on V2 from November 2.</p>
<p>That sequencing matters because it separates the infrastructure rollout from an immediate conversion of the platform’s entire market inventory. Polymarket has not, in the supplied rollout details, set out a broader migration timetable for existing markets.</p>
<p>Canary deployments are generally used to expose new systems to live operating conditions on a constrained basis before a wider release. In this case, the defined scope and dates provide the clearest near-term markers for traders and integrators tracking the protocol change.</p>
<h2 id="erc-1155-positions-and-pusd">ERC-1155 positions and pUSD</h2>
<p>Polymarket’s <a href="https://github.com/Polymarket/polymarket-v2-external" rel="noopener noreferrer nofollow">V2 code repository</a> describes Protocol V2 as a unified ERC-1155 position system designed to handle position tokens, collateral, order matching, modular market resolution and cross-chain bridging.</p>
<p>Under the new architecture, pUSD is the collateral token. Polymarket’s <a href="https://help.polymarket.com/en/articles/14762452-polymarket-exchange-upgrade-april-28-2026" rel="noopener noreferrer nofollow">Help Center documentation</a> describes pUSD as an ERC-20 token on Polygon backed 1:1 by USDC, with the backing enforced on-chain.</p>
<h2 id="four-market-modules">Four market modules</h2>
<p>V2 is being introduced with four market modules: Binary, Atomic Neg-risk, Incremental Neg-risk and Combinatorial markets, according to The Block’s report on the rollout.</p>
<p>The module set extends the deployment beyond a single standard binary-contract format. Binary markets are the familiar yes-or-no form of event contract, while the inclusion of negative-risk and combinatorial modules signals that the architecture is intended to support different market structures through the same broader position system.</p>
<p>In the four-module launch, market-specific contract formats sit on a common position and collateral base instead of being presented as separate trading stacks. Polymarket’s repository specifically characterises this approach to market resolution as modular.</p>
<h2 id="oracle-and-assurance-work">Oracle and assurance work</h2>
<p>Settlement infrastructure is another part of the V2 design. The system introduces an OracleAggregator intended to connect resolution sources including UMA and Chainlink, <a href="https://cointelegraph.com/news/polymarket-smart-contract-overhaul-protocol-v2" rel="noopener noreferrer nofollow">Cointelegraph reported</a>.</p>
<p>Resolution is a material component of prediction-market infrastructure because it determines how a contract’s outcome is established. The described aggregator would provide a layer for connecting those named sources within the V2 system; the available details do not specify which source would resolve any particular market or how source selection would operate in practice.</p>
<p>The code has also undergone audits by Cantina, Certora, Quantstamp, SigmaPrime, Zellic and Pashov, according to the report. Certora formally verified the code as well. Those assurance measures are separate from the live canary process, which is focused on the production rollout and the planned transition of new markets.</p>
<p>For now, the operative dates remain October 30 for the end of the trial and November 2 for the tentative new-market switchover. The rollout will test whether Polymarket can move its pUSD collateral and unified ERC-1155 <a href="https://cryptodaily.co.uk/stocks-glossary/position-definition" rel="noopener noreferrer nofollow">position</a> model from deployment architecture into its next set of live markets.</p>
<p>Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p>

Polymarket Begins Protocol V2 Rollout With pUSD Collateral and ERC-1155 Positions

Table of Contents

Crypto Daily™

Other articles published on Oct 7, 2026

Join our free newsletter for daily crypto updates!