Apyx’s equity-backed stablecoin apxUSD briefly slipped to $0.93 during a broader crypto selloff that saw Bitcoin drop below $63,000. The token, primarily backed by Strategy’s STRC preferred shares with a $100 par value, came under pressure as STRC traded below par, pulling down the market value of reserves.
The protocol maintained that the move was an expected outcome of its design. “This is not a bug, it is the expected behavior of a stablecoin backed by preferred equity rather than cash deposits,” Apyx stated on X, adding that holders familiar with STRC’s risk profile should view such episodes as part of the asset’s normal cycle.
The two-token system includes apxUSD, which targets $1 and pays no yield, and apyUSD, a yield-bearing savings token that accrues returns from STRC dividends. The reserve basket also contains short-term U.S. Treasuries and cash equivalents to boost liquidity. Apyx highlighted that collateral value exceeds circulating supply, absorbing mark-to-market drawdowns before they threaten the peg, and that users can monitor the position in real time through its dashboard.
Concerns over cascading liquidations on Morpho lending markets were dismissed. Apyx clarified that its main apyUSD/apxUSD Morpho market tracks dividend accrual, not STRC spot prices, insulating it from the oracle-driven triggers that would force liquidations. STRC has traded below par four times since August, each time rebounding to $100 after issuers adjusted dividend rates.
