TLDR
- Polymarket will replace USDC.e with Polymarket USD, backed 1:1 by USDC.
- The CTF Exchange V2 contract simplifies order structs and improves matching.
- Polymarket added ERC-1271 signature support and builder codes in CTF v2.
- Bot operators must update SDKs and re-sign orders for the new order struct.
- All open orders will be canceled during the migration maintenance window.
Polymarket has announced its largest exchange upgrade since launch. The company will roll out CTF v2 over the next few weeks. The update includes a rebuilt trading engine, new smart contracts, and a new collateral token called Polymarket USD.
The company said the move will replace USDC.e on the platform. Polymarket USD will be backed one-to-one by USDC. Polymarket also said most users will see a smooth transition through the frontend.
Rebuilt exchange stack and new contract changes
Polymarket said the new exchange stack will change nearly every part of trading on the platform. The company described CTF Exchange V2 as a new version of its exchange contract. It said the upgrade simplifies the order struct and improves order matching.
The company also added support for ERC-1271 signatures. This feature can help smart contract wallets work with the exchange. Polymarket said the new version also includes builder codes for onchain order attribution.
The update also changes how fees are collected and distributed. Polymarket said the system is now more efficient. These changes are part of a wider effort to rebuild the core exchange layer.
In a post on X, the company wrote, “”We’re rolling out a rebuilt trading engine, upgraded smart contracts, and a new collateral token.”” That statement outlined the main parts of the rollout. It also confirmed that the change will happen over the next two to three weeks.
Polymarket USD will replace USDC.e on the platform
A major part of the rollout is the new collateral token. Polymarket USD will replace USDC.e, which the platform has long used on Polygon. The company said the new token is backed one-to-one by USDC.
For most users, the frontend will handle the change automatically. Polymarket said users will only need to complete a one-time approval prompt. This means regular traders should not face many extra steps.
Power users and API-only traders will need to take action. They must wrap USDC or USDC.e into Polymarket USD. The company said this will happen through the Collateral Onramp contract by using the wrap() function.
The move follows a broader shift in Polymarket’s settlement setup. In February, Circle and Polymarket announced a move from bridged USDC on Polygon to native USDC. The companies said that change would support a more scalable settlement system.
SDK updates, order cancellations, and migration timeline
Polymarket also said it is releasing a new CLOB client SDK. The company said the client will handle the V1 to V2 switch automatically. TypeScript, Python, and Go clients will be updated before release day.
Still, builders and bot operators must update to the latest client versions. They will also need to re-sign orders with the new struct. Polymarket said migration guides and a full API changelog will be shared before the launch.
During the upgrade, existing order books will be cleared. Polymarket said all open orders will be canceled during a short maintenance window. The company added that it will announce the exact date and time at least one week in advance.
The rollout comes as prediction markets face more attention from regulators. Last week, the CFTC’s enforcement director said insider trading in prediction markets is a priority. In March, Intercontinental Exchange invested $600 million in Polymarket as part of a plan that could reach $2 billion.
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