Polymarket V2 Swaps Gnosis Setup for ERC-1155 and pUSD
Protocol V2 consolidates positions into one contract and introduces pUSD collateral, cutting gas and complexity.
Polymarket launched Protocol V2 on October 6, 2026, replacing its Gnosis-based legacy infrastructure with a single ERC-1155 positions contract and a new pUSD collateral standard, according to The Block.
Why It Matters
Consolidating positions into one ERC-1155 contract eliminates the fragmented per-market contract architecture that slowed settlement and raised gas costs for traders. pUSD collateral introduces a protocol-native stablecoin layer, which standardises margin across all markets rather than relying on third-party USDC flows. For active bettors, this means lower transaction overhead and potentially faster position resolution. Any migration of collateral systems also carries smart-contract risk — users should verify audits before committing capital.
Context
Polymarket built its original prediction-market infrastructure on Gnosis conditional tokens, a framework designed for flexibility but not optimised for the high-throughput, low-cost demands of a mass-market platform. As of October 2026, Polymarket remains one of the largest decentralised prediction markets by open interest, making infrastructure decisions at this scale consequential for on-chain derivatives broadly.
What's Next
The key milestones to watch are third-party audit disclosures for the new ERC-1155 contract and the timeline for full pUSD collateral migration across existing open markets — both will determine how quickly liquidity providers and market makers adopt V2.
Gambling involves risk. Prediction markets can result in total loss of collateral.
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