Polymarket to Launch Polymarket USD in Major Platform Upgrade

Prediction market protocol, Polymarket, is set to launch its own stablecoin for use on its platform. This will be part of the latest technical upgrades that the platform has planned for the next two-three weeks.

According to the announcement, the platform will introduce Polymarket USD for trading. The new stablecoin will be backed 1:1  by Circle USDC.

Polymarket Will Migrate from USDC.e to Polymarket USD

Polymarket currently uses USDC.e. It’s a bridged version of the Circle USDC stablecoin compatible with the Polygon network as its collateral token. The latest change means Polymarket USD will replace it.

According to Polymarket, the transition will not have any direct impact on casual users. The frontend will automatically convert USDC or USDC.e into Polymarket USD once users provide a one-time approval.

However, builders, power users, and API-only traders on the platform may need to use the  Collateral Onramp smart contract function.

Interestingly, the announcement comes a few months after Circle said it would integrate native USDC into Polymarket. Circle CEO Jeremy Allaire had noted that the direct integration will give Polymarket users a better experience.

The announcement of Polymarket USD raised user questions. Many wondered if it was a new stablecoin or simply proof of collateral for USDC.

There are speculations that Polymarket USD could trigger a trend. Platforms may start issuing their own stablecoins instead of relying on USDT or USDC. Others predict Polymarket could launch its own token, POLY.

Polymarket Overhaul Infrastructure

Interestingly, the collateral token transition is only one part of a broader overhaul planned by Polymarket. The platform also stated that it has upgraded smart contracts and rebuilt the trading engines.

It said:

One of the key upgrades is the CTF Exchange V2, which upgrades the exchange contracts. According to the announcement, this upgrade will optimize Order struct, matching orders and fee collection and distribution.

It also supports 1,271 signatures and includes builder codes for on-chain order attribution.

A new CLOB-Client software development kit (SDK) for builders will also be launched. This will enable automatic switch from V1 to V2 for builders on the latest version of each client. Those running bots on the Polymarket integration must also update their SDK and resign orders.

Meanwhile, the exact date of the upgrade has not yet been announced. However, Polymarket has said that all existing orders will be cleared during that period in a short maintenance window.

Unsurprisingly, this has raised concerns among some users who believe it could affect their transactions. Some are asking for a slower, phased rollout or for delaying the migration of existing markets from V1 to V2.

However, Polymarket has promised to give users advance notice of the upgrade. It stated that the exact date and time will be announced at least one week before it is due.