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Polymarket said it will roll out a rebuilt trading engine, upgraded smart contracts, and a new collateral token over the coming weeks. The overhaul will replace its current liquidity model with an order book system. It will also shift users from bridged collateral to a new stablecoin called Polymarket USD. The company called the move its biggest infrastructure change since launch.
In a statement on X, Polymarket said the upgrade will require users to cancel open orders for a short period before the new system goes live. Traders will receive advance notice before this happens.
The company said the new framework will replace its existing continuous liquidity model with a centralized order book built for on-chain markets. At the same time, redesigned smart contracts will support future growth and reduce trading costs.
Previously, the platform relied on automated liquidity pools. This model sometimes created heavy slippage, which raised trading costs and led to weaker order fills. By contrast, an order book places bids and asks on a ledger until matches occur.
Polymarket said the new structure should improve execution speed and lower transaction costs. As a result, the platform expects a more familiar setup for seasoned traders and firms that run algorithmic strategies.
The change also lays the groundwork for future products. Polymarket confirmed that it is developing a native token called POLY, although it has not announced a launch date.
Polymarket also said it will move away from USDC.e, the bridged version of USDC it has used on Polygon. Instead, it will introduce Polymarket USD as the platform’s main collateral asset.
The company said Polymarket USD will hold one-to-one backing with Circle’s USDC. Since the token will be available natively within the platform, Polymarket expects simpler on-chain operations and less complexity for traders.
Bridged tokens can add risk because they rely on multiple networks and custodial bridges. By shifting to a platform-native dollar, Polymarket aims to streamline trading and reduce operational friction.
The stablecoin may also open a new revenue stream. If users move large balances into Polymarket USD, the platform could earn yield on those funds and direct this revenue toward development or token incentives.
Can the switch to native collateral and a faster matching engine reshape how traders use on-chain prediction markets?
Polymarket said most users should manage the transition without major difficulty. Even so, advanced traders and developers will need to update their tools to fit the new order book format.
Builders who rely on APIs for automated trading must revise their software development kits. In addition, traders who run bots or custom scripts may face brief downtime and will need to adjust their operations.
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Users with open orders must cancel them manually or risk resets during the migration. Polymarket said it will give operators several days’ notice before any cancellations take effect.
Traders who still hold collateral in USDC.e must wrap or convert those balances into Polymarket USD. The company said the process will remain straightforward and that users will not lose funds if they follow the instructions.
Polymarket launched in 2020 and grew into one of the most active on-chain prediction markets. Its markets cover elections, economic data, sports, and technology trends. Even so, prediction markets still face regulatory scrutiny over gambling and derivatives questions, while Polymarket says clear communication and compliance remain important as the sector expands.
Polymarket is rebuilding its platform with a new order book system, upgraded smart contracts, and Polymarket USD as its main collateral. The shift aims to improve speed, reduce costs, and support future products like the POLY token. Traders and developers now need to prepare for the transition.
