Stablecoin depegs are a recurring feature of crypto bear markets. And the final candidate is apxUSD, the Apyx protocol’s preferred equity-backed stablecoin.
As a Bitcoin market leader fell sharply over the past 24 hours, hitting a low of less than $63,000 at one point, apxUSD briefly slipped as low as 93 cents, moving away from its dollar peg by 1:1, according to CoinMarketCap.
The stablecoin is primarily backed by preferred shares issued by digital asset treasury companies, specifically Strategy’s STRC shares, which have a par value of $100.
The protocol buys these stocks, collects the dividends they pay, and distributes the yield to holders on the chain. The reserve basket also includes short-term U.S. Treasury bills and cash equivalents to ensure liquidity and reduce concentration risk.
Apyx runs a two-token system. apxUSD is the basic stablecoin designed to trade at $1 and does not earn a yield; Holders who deposit apxUSD receive apyUSD, a yield-bearing savings token that generates returns through dividends from the underlying preferred stocks.
That said, since preferred stocks make up the majority of these reserves, the stablecoin is influenced by the volatility of the underlying stocks. So, when STRC trades below its par value of $100, the market value of apxUSD reserves decreases, leading to volatility of the stablecoin in secondary markets.
According to Apyx, this is not an extraordinary development.
“This is not a bug, it is the expected behavior of a stablecoin backed by preferred shares rather than cash deposits. Holders who understand STRC’s risk profile and its mean reversion history should view these episodes as an asset class working through its normal cycle, not as evidence of a broken peg,” the protocol noted in a detailed X article.
He explained that his ankle stability model has several layers to absorb stress. Preferred stocks have structural features that allow issuers to increase dividend rates, which attracts demand for the shares, thereby increasing their value toward par over time.
According to Apyx, Strategy has historically used this leverage. Note that STRC has traded below its face value four times since August of last year, and each episode ended with a price rebound to $100.
Beyond that, Apyx said it maintains a collateral value greater than the circulating supply of the stablecoin. This cushion makes it possible to absorb declines in the market value of support assets before they have a significant impact on the anchor.
“Users can compare the position of collateral against the apxUSD supply in real-time via the in-app dashboard,” it says.
The explanation comes as market participants panicked following the brief de-anchoring, with some saying continued volatility could shake investor confidence.
Concerns were also raised about cascading liquidations across Morpho’s lending markets, but Apyx said these were largely unjustified. It said its main apyUSD/apxUSD Morpho market is determined by dividend accumulation, not the STRC spot price, meaning STRC volatility does not impact this oracle and does not trigger liquidations.
