Leading on-chain prediction market platform Polymarket is set to implement a substantial upgrade, introducing a novel order book system and launching its own stablecoin for collateral use. The company has described this update as the most significant change since its inception.
“We’ve listened to your feedback and are thrilled to announce that Polymarket will undergo a comprehensive exchange upgrade,” announced the platform on X. “In the coming weeks, we’ll be deploying an enhanced trading engine, improved smart contracts, and introducing a new collateral token named Polymarket USD.” The firm plans to transition from USDC.e over this period.
These upgrades are expected to take place in the next few weeks, necessitating the cancellation of all open orders on the platform for a short time. Traders will be given several days’ notice before any unfilled orders are cancelled.
“Our most substantial infrastructure update since launch… promises faster execution, reduced gas fees, and a more robust foundation moving forward,” the company stated.
Although the transition is expected to be smooth for most users of the prediction market, developers, API traders, and power users might experience significant changes. For instance, individuals utilizing bots for trading will need to update their software development kits to accommodate the new order book structure.
Moreover, advanced users may require a smart contract wrap function to convert their USDC or USDC.e into Polymarket’s newly introduced stablecoin and collateral token—Polymarket USD.
Previously, the firm used USDC.e on Ethereum’s scaling network, Polygon—a bridged version of Circle’s dollar-backed stablecoin, USDC. The introduction of its own 1:1 backed token by Circle has sparked speculation about potential yield improvements for holders on the platform and a possible revenue increase for the company.
“If the @polymarketstablecoin offers a 4% yield, it’ll become my new savings account,” tweeted Scott (@Scott_eth).
Simultaneously, there is speculation that this stablecoin launch could lead to the introduction of Polymarket’s native token, POLY. Although the development of the token has been confirmed, predictors on Myriad—a prediction market by Decrypt’s parent company, Dastan—estimate only an 11% chance of its release before May.