Polymarket Launches Protocol V2 with pUSD and Unified Market System
Polymarket's upgraded infrastructure introduces pUSD collateral and a unified ERC-1155 positions system while maintaining legacy markets.
Polymarket's upgraded infrastructure introduces pUSD collateral and a unified ERC-1155 positions system while maintaining legacy markets. This is an original TLT brief synthesising 6 outlets (TronWeekly, Cointelegraph, The Block, and others), plus live market data, as of Wed, 07 Oct 2026 16:00:05 UTC.
- Polymarket's Protocol V2 introduces pUSD as collateral and unified ERC-1155 market positions.
- Existing CTF markets remain on the legacy system during the phased transition.
- Protocol V2 includes modular oracle support and a single positions contract.
- Polymarket's TVL stands at $336.24M, down 1.6% over the past week.
All outlets agree on the November rollout timeline, pUSD integration, and phased transition approach, with existing markets staying on the legacy system. No discrepancies were found between reports.
Polymarket is set to launch its Protocol V2 on November 2, introducing significant upgrades to its decentralized prediction market infrastructure. The new version will feature pUSD as the primary collateral type and implement a unified ERC-1155 positions contract, replacing the current Gnosis-based system. This information has been corroborated by multiple outlets including Cointelegraph, The Block, and Crypto Daily.
The upgrade aims to streamline the platform's architecture by introducing a single positions contract and modular oracle support. This change is expected to improve the efficiency and scalability of the platform. According to The Block, the new system will provide a more cohesive trading experience by unifying market positions under the ERC-1155 standard. Crypto Daily further reports that the protocol began canary testing on October 5, indicating a thorough testing phase prior to the full rollout.
The transition to Protocol V2 will be conducted in a phased manner. Multiple outlets, including TronWeekly and Cointelegraph, confirm that existing Continuous Token Futures (CTF) markets will remain on the legacy system. This approach allows Polymarket to maintain continuity for current users while gradually introducing the new infrastructure. The phased transition minimizes disruption and ensures that user balances and positions are not affected during the upgrade.
Polymarket's decision to adopt pUSD as collateral reflects the growing trend of using stablecoins in decentralized finance (DeFi) applications. The introduction of modular oracle support also suggests a commitment to enhancing the platform's data integrity and reliability. These changes align with broader developments in the DeFi space, where platforms are increasingly seeking to improve user experience and operational efficiency.
As of the latest data from DeFiLlama, Polymarket's Total Value Locked (TVL) stands at $336.24 million, representing a 1.6% decrease over the past week. This figure provides context for the platform's position in the DeFi ecosystem, indicating a stable but slightly declining trend in value. The overall crypto market cap is currently $2.89 trillion, with 
Bitcoin experiencing a 24-hour decline of 3.70% and the Fear & Greed Index at 71, indicating a state of 'Greed' among investors.
The launch of Protocol V2 is a significant milestone for Polymarket, positioning it to better compete in the rapidly evolving DeFi landscape. The integration of pUSD and the unified ERC-1155 system are expected to enhance the platform's functionality and appeal to a broader user base. As the transition progresses, it will be important to monitor the platform's performance and user reception, particularly in terms of liquidity and market activity.
Figures and sectors in this story, checked live against on-chain aggregators · October 7, 2026.
TLT reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
This story — questions
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This is an original TLT brief that synthesises reporting from TronWeekly, Cointelegraph, The Block, Crypto Daily, Cointribune, Bitcoin World, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original TLT brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.