October 13th 2026, 3:15 PM
Zest Protocol Terminates aeUSDC on Stacks Market V1 by October 23
Key Summary
Zest Protocol has set October 23 as the deadline for users to exit aeUSDC positions on Stacks Market V1, marking the end of a migration window that reshapes liquidity on the Stacks blockchain. The protocol's deprecation effort includes disabling aeUSDC minting and ceasing support for the Classic Allbridge bridge. Users must manually withdraw aeUSDC, convert to USDCx, and deposit into V2, with reduced borrow caps on V1 to make the old market less attractive.
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Background Context
The deprecation effort is part of a broader migration to Stacks Market V2, which offers improved collateral risk management and partial liquidations.Why aeUSDC is being left behind
The legacy bridged USDC variant dates to around 2023 and operates on USDCx, a stablecoin tied to a partnership with Circle directly. The two assets are not interchangeable at the protocol level, so no automated path exists between them.The migration process
Users must manually withdraw aeUSDC, convert to USDCx, and deposit into V2. Zest has reduced borrow caps on V1 to make the old market less attractive.What V2 offers
Stacks Market V2 introduces pair-specific risk groups, allowing the protocol to manage collateral risk at the asset-pair level. It also introduces partial liquidations, replacing the binary all-or-nothing liquidation model common in earlier DeFi lending markets.Current status
Stacks Market V2 had reached a total value locked of approximately $87 million by early October, with utilization rates running high across its major assets.Conclusion
The deprecation of aeUSDC marks a significant shift in the Stacks ecosystem, with Zest Protocol's migration to Stacks Market V2 offering improved risk management and liquidity options.#StacksMarket#USDC#DeFi#ZestProtocol