Prediction market platform Polymarket has begun piloting a new smart contract system, dubbed Protocol V2, in live markets, The Block reported on Monday.

Rajas Alex, Polymarket’s head of protocol, said this on social media platform X on Sunday, according to the report.

Polymarket has operated prediction markets using a Gnosis-based contract structure since 2019. It will apply Protocol V2 to newly opened markets instead of that structure.

Protocol V2 consists of a single ERC-1155 position contract, collateral asset pUSD, an exchange by market type and a router. Polymarket said it has added a contract layer each time it introduced a new market type, and it aims to reduce those layers through Protocol V2.

V2 initially supports 4 market types: binary, atomic neg risk, incremental neg risk and combinatorial. For outcome resolution, it uses an oracle aggregator that connects to multiple data sources including UMA and Chainlink.

It also offers a function to move positions, collateral and resolution outcomes to other chains. Polymarket plans to enable the function when it expands beyond its current network.

Polymarket is hiring senior personnel and expanding its protocol team as it scales up. Alex joined in May. Polymarket hired former Bird founder and former Uber and Lyft executive Travis VanderZanden as chief growth officer about 3 months later. Bloomberg reported Polymarket is in talks to raise $1 billion at a post-investment valuation of $21 billion.