Polymarket, the leading decentralized prediction market platform, has officially launched the Central Limit Order Book (CLOB) v2 upgrade, accompanied by a $1 million liquidity rewards program designed to attract professional market makers and deepen order books. The upgrade went live on April 28 at approximately 11:00 UTC after a brief maintenance window.
The technical overhaul introduces new exchange contracts (CTF Exchange V2 and Neg Risk CTF Exchange V2), a rewritten CLOB backend, and a new collateral token called Polymarket USD (pUSD). The platform describes its CLOB as a "hybrid-decentralized trading system — offchain order matching with onchain settlement via the Exchange," now upgraded for improved speed and scale. Developers must migrate to the new @polymarket/clob-client-v2 or py-clob-client-v2 SDKs, with warnings that "no update means no execution" for bots and API integrations after the cutover.
Additional technical improvements include support for 1271 signatures and on-chain attribution codes for builders, enabling institutional players and front-ends to route orders, track flow, and share in fee revenue. Community contributor Vihan Singh noted on X that the team is "upgrading the entire Polymarket exchange stack… new contracts. New order book. New collateral token."
The $1 million liquidity rewards program builds on recent fee changes that, according to analyst estimates, are expected to generate approximately $800,000 to $1 million daily on current volumes. On-chain data shows roughly $9.55 billion in 30-day trading volume, implying about $25 million in monthly fee revenue or an annualized run-rate near $300 million. The incentives aim to deepen order books across Polymarket's finance, politics, and culture markets while funding a Maker Rebates Program that pays USDC rebates to liquidity providers.
The upgrade positions Polymarket to compete for institutional-grade microstructure at a time when prediction markets are drawing increased scrutiny from U.S. regulators and experiencing a surge in retail user adoption.
