TLDR
- Polymarket is rolling out what it calls its “biggest change to date” with a rebuilt trading engine and upgraded smart contracts
- The platform is launching its own stablecoin called Polymarket USD to replace the bridged USDC.e token it currently uses
- Polymarket USD will be backed 1:1 by Circle’s USDC stablecoin
- All open orders on the platform will need to be cancelled during the transition, with traders getting a few days notice
- A native POLY token has been confirmed but has no launch date, with prediction markets putting odds of a May launch at just 11%
Polymarket, the leading on-chain prediction market platform, is preparing to roll out a sweeping upgrade to its core infrastructure over the coming weeks.
The company announced the changes on X, describing the overhaul as its “biggest change to date.” The upgrade includes a rebuilt trading engine, new smart contracts, and a brand-new stablecoin called Polymarket USD.
The new stablecoin will replace the platform’s current collateral token. Until now, Polymarket has used USDC.e on Polygon, which is a bridged version of Circle’s USDC stablecoin.
Polymarket USD will be backed 1:1 by Circle’s USDC. The shift to a proprietary stablecoin sparked immediate speculation among users about possible yield opportunities for those holding funds on the platform.
Some observers also suggested the move could lead to a large revenue increase for the company itself.
What the Upgrade Means for Traders
The transition will require all open orders on the platform to be cancelled. Polymarket said it will give traders at least a few days of advance notice before that happens.
For most everyday users, the company does not expect major disruptions. The changes are designed to deliver faster execution and lower gas fees.
However, builders, API-only traders, and power users may face more friction during the switch. Those running trading bots 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. This will allow them to convert their existing USDC or USDC.e holdings into the new Polymarket USD token.
The company described the technical improvements as providing “a cleaner foundation going forward.”
POLY Token Still in the Works
The stablecoin launch also reignited discussion about Polymarket’s planned native token, POLY. The company has confirmed the token is in development.
However, no official timeline has been given for the POLY token release. Polymarket has not announced an estimated launch date.
Prediction markets are not optimistic about a near-term rollout. On Myriad, a prediction market platform from Decrypt’s parent company Dastan, the odds of POLY launching before May sit at just 11%.
The prediction market upgrade comes at a time when Polymarket continues to attract attention for its role in event-based trading. The platform gained widespread visibility during the 2024 U.S. presidential election cycle.
Polymarket’s decision to build its own stablecoin follows a broader trend of crypto platforms seeking greater control over their financial infrastructure. By moving away from a bridged token, the company reduces its dependence on third-party bridging mechanisms.
The rebuilt order book and trading engine are expected to improve speed and reduce costs for users placing bets on the platform’s prediction markets.
Polymarket said the full rollout will take place over the next few weeks. The company urged traders and developers to watch for further announcements regarding the exact timeline for order cancellations.
The current odds on Myriad give just an 11% chance that the POLY token will launch before May.
