Key Highlights
- The upgraded CLOB v2 introduces pUSD, a token issued on Polygon with a 1:1 backing against USDC, used as trading collateral.
- The liquidity incentive is structured to attract early participation from market makers.
- Developers must migrate to updated SDKs, as older integrations are no longer supported.
Prediction market platform Polymarket today officially rolled out its long-awaited upgraded Central Limit Order Book (CLOB) v2 exchange.
In an official announcement on X, the platform stated, “The upgraded CLOB v2 exchange is up. APIs are accepting orders now; the public website will reopen shortly. $1M in liquidity rewards running now: $500K across the first 2 hours, $500K across the rest of the day.”
The upgrade went live following a one-hour maintenance window during which trading was halted and order books were cleared. To boost liquidity on the new system, Polymarket has come up with $1 million in rewards.
Details of the new upgrade
The upgrade includes new exchange contracts, a rewritten CLOB backend, and a new primary collateral token known as pUSD (Polymarket USD). This is a standard ERC-20 token on Polygon, backed 1:1 by USDC having on-chain enforcement of the backing.
After logging in, users are prompted to convert their existing balances to pUSD and approve the new contracts, a one-time process for most retail traders.
CLOB v2 also comes with other various improvements over the previous version. Order structures got simplified by removing legacy fields like “nonce” and “feeRateBps.” Trading fees are now decided by the operator at the time of the machine instead of being set within individual orders.
The platform has asked developers and professional traders to update to the new SDKs, as older versions are no longer supported. The initial announcement for this upgrade was made on April 6.
The incentive program
For gaining momentum on the new exchange, Polymarket has launched a $1 million liquidity rewards program. Out of which, half of the rewards, around $500,000, are allocated to the first two hours of trading, while the rest, $500,000, will be distributed across the rest of the day.
This incentive is designed to attract market makers and active traders quickly after the launch. For regular users accessing the platform through the website, the transition is anticipated to be comparatively smooth. However, API users and institutional market makers have to complete their integrations in advance.
The upgraded system focuses on delivering faster order matching, less latency, and significantly improved liquidity, which are necessary features for a platform that facilitates high-volume trading on political, crypto, sports, and other events.
Trading upgrade
The Polymarket’s CLOB v2 represents a new technical upgrade in the prediction market platforms. With the introduction of a new collateral token, simplified order structures, and enhanced backend infrastructure, the exchange targets providing improved performance and deeper liquidity.
Accompanied by a $1 million liquidity rewards program, it is expected to accelerate the adoption in the initial days following the relaunch. However, the long-term impact of these changes will rely on user response and overall trading activity.
Today’s update reflects Polymarket’s continued efforts to strengthen its offering amid growing interest in decentralized prediction markets. Market participants will now watch closely to see how effectively the new system supports higher volumes and more efficient trading.
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