Polymarket and Arbitrum unveil major market upgrades

6.7 Tech

Oct 6, 2026

Polymarket launches Protocol V2 with unified contracts and pUSD collateral. Arbitrum introduces functionSPACE, enabling programmable, outcome-driven markets with shared liquidity.

Polymarket has unveiled Protocol V2, moving away from its Conditional Tokens Framework to a unified architecture based on a single ERC-1155 positions contract and pUSD as the exclusive collateral. This upgrade introduces market-specific exchanges, a router for streamlined order management, and an oracle aggregator compatible with UMA and Chainlink, enabling flexible market resolution. Protocol V2 supports binary, negative-risk, incremental negative-risk, and combinatorial markets through modular components. This design simplifies the experience for users and integrators by reducing contract and approval complexity. The rollout began with live testing in October, with all new markets transitioning by November 2. Meanwhile, Arbitrum has launched functionSPACE, a protocol that lets developers build programmable markets around measurable outcomes. Supporting binary, numerical range, and custom payoff structures, functionSPACE enables prediction and settlement features to be embedded directly into decentralized applications. Its shared liquidity model allows a single market to function across multiple interfaces, reducing fragmentation and expanding participation. Both initiatives represent significant advancements in on-chain market infrastructure and accessibility.