Apyx’s apxUSD stablecoin dropped to 93 cents on Wednesday.
By Omkar Godbole|Edited by Shaurya Malwa Jun 4, 2026, 6:35 a.m. 2 min readMake preferred on Apyx's stablecoin depegs (Pixabay)Key Points:
- Apyx’s apxUSD fell to 93 cents amid a decline in bitcoin prices below $63,000.
- The protocol asserts that such volatility is a standard occurrence, supported by overcollateralization, dividend mechanisms, and limited liquidation risks within Morpho markets.
Depegging of stablecoins is a frequent event during downturns in the crypto market, and the latest instance involves apxUSD, Apyx's equity-backed stablecoin.
As bitcoin BTC$64,040.41 experienced a significant drop below $63,000, apxUSD fell to a low of 93 cents, diverging from its usual 1:1 peg with the dollar, as reported by CoinMarketCap.
apxUSD's depeg. (CoinMarketCap)This stablecoin is primarily underpinned by preferred equity from digital asset treasury firms, particularly the STRC shares from Strategy, which hold a par value of $100.
The protocol acquires these shares, collects the dividends they generate, and redistributes the earnings to on-chain holders. Additionally, the reserve includes short-term U.S. Treasuries and cash equivalents to enhance liquidity and mitigate concentration risks.
Apyx operates with a dual-token structure. The apxUSD functions as the primary stablecoin intended to maintain a $1 value and does not yield interest; however, depositing apxUSD allows holders to receive apyUSD, a savings token that generates returns from dividends from the underlying preferred shares.
However, since the majority of reserves comprise preferred equity, the stablecoin's value is susceptible to fluctuations in the underlying shares. Consequently, when STRC trades below its $100 par value, the market value of apxUSD's reserves diminishes, causing volatility in the stablecoin's secondary markets.
Apyx contends this is not an unusual situation.
"This is not a bug; it is the expected behavior of a stablecoin backed by preferred equity rather than cash deposits. Holders who understand STRC's risk profile and its historical tendency to revert should view these instances as part of the asset class's normal cycle, not as evidence of a broken peg," the protocol stated in a detailed X post.
The protocol elaborated that its peg stability model incorporates multiple layers to manage stress. The structural features of preferred shares allow issuers to increase dividend rates, thereby attracting demand for the shares and enhancing their value over time.
Apyx noted that Strategy has historically utilized this mechanism. It's worth mentioning that STRC has dipped below its par value four times since last August, and each time, prices rebounded to $100.
Additionally, Apyx maintains collateral values that exceed the circulating supply of the stablecoin. This cushion aids in absorbing mark-to-market losses in the backing assets before they significantly affect the peg.
"Users can monitor the collateral status against apxUSD supply in real time via the app dashboard," the protocol explained.
This clarification comes as market participants reacted to the temporary depegging with concern, with some expressing worries that ongoing volatility could undermine investor confidence.
There were also apprehensions regarding potential cascading liquidations in Morpho lending markets, but Apyx indicated that these concerns were largely unfounded. The main apyUSD/apxUSD Morpho market is primarily influenced by dividend accrual rather than the spot price of STRC, indicating that fluctuations in STRC do not affect that oracle and do not trigger liquidations.
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