OKX Europe Introduces LYUSDC Token for Faster $USDC Redemptions

OKX Europe is introducing a new token called LYUSDC to represent customer positions in its $USDC DeFi Earn product. Starting October 5, 2026, at 10:00 UTC, existing $USDC DeFi Earn balances in the European Economic Area will be automatically converted into LYUSDC at a 1:1 ratio. This change does not affect the amount of $USDC users hold or their rewards, as it simply wraps the staked balances into a new in-platform asset.

On October 14, 2026, the underlying vault supporting these positions will migrate from Spark $USDC on Ethereum to Spark $USDC on X Layer. This transition is expected to reduce redemption times from up to a day to just a few hours, enhancing the efficiency of the DeFi Earn product. LYUSDC cannot be traded, transferred, or withdrawn outside the OKX platform.

Users do not need to take any action for the conversion or vault migration, as both processes will happen automatically. However, those who prefer to avoid holding LYUSDC or wish to keep their positions on Spark $USDC on Ethereum must redeem their On-chain Earn subscriptions before the respective dates. OKX Europe has emphasized that staking through LYUSDC carries risks, including market volatility, network and protocol risks, and potential slashing that could affect the 1:1 peg between LYUSDC and $USDC.

The company has also noted that there is no guarantee of full principal return or fixed rewards, and any compensation offered in exceptional circumstances is discretionary. The announcement is intended for informational purposes only and should not be considered investment advice.