**[Polymarket Launches Protocol V2, "Canary" Markets Go Live on October 5]** Foresight News reports that Polymarket protocol lead Rajath Alex announced via Twitter the launch of Protocol V2, the next-generation smart contract system for prediction markets. The current system is based on Gnosis's 2019 Conditional Tokens Framework, which requires adding adapters for each new market type. V2 replaces this with a single ERC1155 position contract, a single collateral asset (pUSD), a single exchange, and a single router. Position IDs directly identify market types, markets, and outcomes. The initial module supports binary markets, atomic no-risk markets, incremental no-risk markets, and combination markets. Settlement will be handled by the new OracleAggregator, which integrates UMA, Chainlink, and future oracles. The protocol prioritizes cross-chain bridging for positions, collateral, and settlement as a core feature, though the timeline for multi-chain activation is yet to be determined. Contracts can be upgraded through governance processes. Future development directions include scalar settlement and directional collateral refunds. The code has been audited by Cantina, Certora, Quantstamp, SigmaPrime, Zellic, and Pashov, and formally verified by Certora. The maximum bounty for critical vulnerabilities is set at $5 million. The production environment "Canary Markets" (small-scale trial runs) will operate from October 5 to October 30, with new markets tentatively transitioning to V2 starting November 2. Existing CTF markets and positions will not be converted. Concurrently, Polymarket will launch Data API V2, powered by its proprietary on-chain indexer.