Polymarket Unveils Massive V2 Upgrade: Rebuilt Engine, Native Stablecoin, and Enhanced Web3 Experience

Polymarket, the world’s leading on-chain prediction market, has announced a sweeping platform overhaul designed to redefine the user experience and bolster its competitive edge in the rapidly evolving Web3 landscape. The upgrade includes a complete reconstruction of its core trading engine and the introduction of a native USD stablecoin, “Polymarket USD.”

The Polymarket development team shared the news on social media platform X on Monday, stating: “Over the next 2-3 weeks, we’re rolling out a full technical stack upgrade for the entire Polymarket exchange. Expect new contracts, a brand-new order book, and new collateral tokens.”

V2 Launch: Unleashing Speed and Efficiency

At the heart of this transformative upgrade is the launch of the “Polymarket CTF Exchange V2,” the foundational smart contract orchestrating all on-chain operations. This next-generation system promises a significantly faster and more efficient matching engine.

The transition to V2 will drastically reduce the computational steps required to verify and match orders, leading to a substantial increase in transaction speed and a notable decrease in gas fees. Furthermore, the platform’s order data structure (Order Struct) will undergo significant streamlining, removing redundant fields for a more agile and responsive trading process.

Polymarket emphasized that this is the most extensive platform redesign since its inception. Following months of exponential growth, Polymarket is navigating an increasingly competitive environment. The landscape now includes not only established prediction market rivals like Kalshi but also major cryptocurrency exchanges such as Coinbase and Crypto.com, and even sports betting giants like DraftKings, all vying for a share of the burgeoning prediction market pie.

Technically, V2 will integrate an advanced Central Limit Order Book (CLOB), expertly blending the flexibility of an off-chain order book with the robust security of on-chain execution. The team advises developers building trading bots or custom integrations to update their Software Development Kit (SDK) and re-sign orders using the new structure. Regular users, however, will simply need to await the brief system migration period.

Polymarket clarified: “During the upgrade, all existing order books will be cleared, and the platform will experience a short maintenance downtime. The precise date and time will be announced at least one week in advance.”

Empowering Users: Smart Contract Wallets and Native Stablecoin

For the broader retail user base, one of the most impactful enhancements will be the official support for the EIP-1271 Ethereum standard. This crucial integration will enable smart contract wallets to directly sign orders on Polymarket, significantly boosting the convenience and utility for multi-signature wallet users.

In a strategic move to enhance trust and liquidity, Polymarket also announced the introduction of its new native collateral token: “Polymarket USD.” This stablecoin will fully replace the existing “USDC.e,” which, as a bridged version on the Polygon blockchain, has raised concerns among some users due to its non-native status from Circle.

Polymarket USD will be fully backed 1:1 by native USDC. The platform had previously signaled its intention to shift from USDC.e to Circle-issued native USDC back in February. For most users, asset conversion will be seamless, requiring only a single authorization within the frontend interface. However, advanced users may need to utilize the “wrap()” function within the Collateral Onramp contract to convert their USDC.e or USDC into Polymarket USD.

Notably, while Polymarket had previously hinted at exploring the possibility of issuing a platform token “POLY,” Monday’s official announcement made no mention of such plans.

Earlier reports suggest that Polymarket is actively pursuing a new funding round, with its market valuation reportedly approaching an astounding $20 billion, underscoring the immense potential and investor confidence in the decentralized prediction market sector.