Zest Protocol Users Face October 23 Exit Deadline
Investors holding aeUSDC on Stacks Market V1 must migrate their positions to the V2 platform by the October 23 deadline.
Updated on Oct. 13, 2026 in Investing
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Zest Protocol has set an October 23, 2026, deadline for users to exit their aeUSDC stablecoin positions on the V1 market. This move comes as the platform shifts operations to the V2 environment which utilizes the USDCx stablecoin.
Why it matters
The transition is required because aeUSDC and USDCx are not interchangeable at the protocol level. Users who do not manually migrate their assets by the deadline will face a wind-down of the infrastructure supporting their current positions.
Stacks Market V2 holds $87 million in total value, with current utilization rates at 70% for sBTC, 75% for STX, and 72% for USDCx. The deadline for exiting legacy aeUSDC positions is October 23.
The players
Zest Protocol
A lending platform on the Stacks blockchain that manages borrow caps and liquidity for digital assets.
Circle
The financial technology firm that partners with protocols to issue USDC and related stablecoin assets.
The details
Users must manually withdraw their aeUSDC holdings from the Stacks Market V1 protocol. To complete the transition to the current V2 system, funds must be converted to the newer USDCx standard, which is supported by a partnership with Circle. Conversion can be performed by swapping assets on Bitflow or using the Allbridge Classic bridge, as support for the bridge has been discontinued.
Timeline
2023 marked the creation of the aeUSDC stablecoin variant.
Early October 2026 saw Stacks Market V2 reach $87 million in total value locked.
October 23, 2026, serves as the final deadline for users to exit aeUSDC positions.
Money Landscape
The migration of Zest Protocol to Stacks Market V2 marks a structural shift in liquidity management for the platform. This move reflects the broader industry trend of protocols standardizing assets to align with specific institutional partnerships.
If you hold aeUSDC on Stacks Market V1, you must manually convert your assets to USDCx to maintain your participation in the V2 market. Consult with a financial professional to understand the risks associated with protocol migrations and decentralized asset management.
The takeaway
Protocol upgrades often require manual intervention to prevent the loss of access to your assets. Ensure you have reviewed your holdings on the Stacks blockchain and completed necessary conversions before the October 23 deadline.
What happens next
October 23, 2026, is the cutoff date for all aeUSDC position exits on the legacy V1 protocol.
Further reading
For more on managing your digital asset holdings, visit our Investing section.
Source note: This article includes information reported by Crypto Briefing.
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