OKX Europe Introduces LYUSDC Token for Faster DeFi Earn Redemptions
OKX Europe is introducing a new token, LYUSDC, to represent customer positions in its USDC DeFi Earn product across the European Economic Area (EEA). The change will take effect starting October 5, 2026, at 10:00 UTC, with an additional vault migration scheduled for October 14, 2026. The LYUSDC token does not alter the amount of USDC users hold or their reward accrual but simply wraps existing staked balances into a new in-platform asset.
Existing USDC DeFi Earn positions will automatically convert to LYUSDC at a 1:1 ratio. No action is required from users, as the swap and future rewards will happen automatically. On October 14, 2026, the underlying vault will transition from Spark USDC on Ethereum to Spark USDC on X Layer, aiming to reduce redemption times from up to a day to just a few hours.
LYUSDC is strictly an in-platform instrument and cannot be traded, transferred, or withdrawn outside of OKX. Users who prefer not to hold LYUSDC or have their positions moved to the new vault must redeem their On-chain Earn subscriptions before the respective dates. OKX Europe has also outlined potential risks, including market volatility, network and protocol risks, and the lack of guarantees on principal or reward returns.
The company emphasized that LYUSDC is not a stablecoin and its value depends on the underlying staked assets. Redemption timing and conditions are subject to protocol limitations and liquidity, with compensation in exceptional circumstances being discretionary rather than contractual.