Polymarket, a prominent on-chain prediction market platform, is deploying what it describes as its biggest upgrade since launch. The overhaul includes a rebuilt trading engine, updated smart contracts, and a new platform-specific stablecoin. The changes are set to roll out over the coming weeks and represent a significant shift in the platform’s technical infrastructure.
The new collateral token, called Polymarket USD, will replace USDC.e, a bridged version of Circle‘s dollar-backed stablecoin that Polymarket has historically used on Polygon, an Ethereum scaling network. Polymarket USD will be backed 1:1 with Circle’s USDC. The platform announced the changes in a post on X, stating the upgrade would bring faster execution, lower gas fees, and a cleaner technical foundation going forward.
During the transition, all open orders on the platform will need to be cancelled for a brief period. Polymarket has committed to giving traders at least a few days of advance notice before any unfilled orders are removed. The firm says it does not anticipate a difficult transition for most users, though certain groups will face more significant adjustments.
Builders, API-only traders, and power users are among those expected to be more affected by the changes. Users operating bots to trade on the platform will need to update their software development kits to work with the new order book structure. More advanced users may also need to use a smart contract wrap function to convert their existing USDC or USDC.e holdings into Polymarket USD.
The introduction of Polymarket’s own stablecoin has prompted speculation among users about potential yield opportunities for those holding funds on the platform, as well as the possibility of a meaningful revenue increase for the company. Some users publicly suggested that if the new token offered a yield of around 4%, it could function as an attractive savings vehicle. Polymarket has not confirmed any yield-bearing features for the token.
The upgrade has also renewed discussion around the platform’s previously confirmed but unlaunched native token, POLY. Some users speculated that the stablecoin rollout could accelerate the release of POLY. However, predictors on Myriad, a prediction market operated by Dastan, place the odds of POLY launching before May at just 11%, suggesting the market does not expect an imminent release.
Originally reported by Decrypt.
