Stablecoin depegs are a recurring feature of crypto bear markets. And the latest candidate is apxUSD, the preferred equity-backed stablecoin of the Apyx protocol.
As market leader bitcoin fell sharply in the past 24 hours, reaching lows under $63,000 at one point, apxUSD briefly slipped to as low as 93 cents, deviating from its 1:1 dollar peg, according to CoinMarketCap.
The stablecoin is primarily backed by preferred equity issued by digital asset treasury firms, specifically Strategy’s STRC shares, which carry a $100 par value.
The protocol purchases those shares, collects the dividend they pay and distributes the yield to onchain holders. The reserve basket also includes short-term U.S. Treasuries and cash equivalents to ensure liquidity and reduce concentration risk.
Apyx runs a two-token system. apxUSD is the base stablecoin designed to trade at $1 and does not pay yield; holders who deposit apxUSD receive apyUSD, a yield-bearing savings token that accrues returns through dividends flowing in from the underlying preferred shares.
That said, because preferred equity makes up the majority of those reserves, the stablecoin is influenced by the volatility in the underlying shares. So, when STRC trades below its $100 par value, the market value of apxUSD’s reserves declines, leading to volatility in the stablecoin in secondary markets.
This, according to Apyx, isn’t an extraordinary development.
“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 history of mean-reversion should view these episodes as the asset class working through its normal cycle, not as evidence of a broken peg,” the protocol noted in a detailed X post.
It explained that its peg stability model has multiple layers to absorb stress. The preferred shares have structural features that allow issuers to raise dividend rates, which draw demand for the shares, lifting their value toward par over time.
According to Apyx, Strategy has historically used this lever. Note that STRC has traded below its par value four times since August last year, and each episode ended with prices bouncing back to $100.
Beyond that, Apyx said that it maintains collateral value in excess of the stablecoin’s circulating supply. This buffer helps absorb mark-to-market drawdowns in the backing assets before they meaningfully impact the peg.
“Users can compare the collateral position against apxUSD supply in real time through the app dashboard,” it said.
The explainer comes as market participants panicked over the brief de-peg, with some saying persistent volatility could shake investor confidence.
There were also concerns about cascading liquidations across Morpho lending markets, but Apyx said those were largely misplaced. It said that its main apyUSD/apxUSD Morpho market is driven by dividend accrual, not STRC’s spot price, which means that volatility in STRC doesn’t impact that oracle and trigger liquidations.
