As Bitcoin briefly dipped below $63,000, Apyx's stablecoin apxUSD briefly fell to $0.93 on Wednesday, deviating from its $1 peg. Apyx later responded that this was not a system malfunction, but rather an expected performance of its asset-backed structure in volatile market conditions.
The two types of tokens operate together
Apyx employs a dual-token structure. apxUSD is the base stablecoin with a target price of $1 and does not offer yield on its own. Users who deposit apxUSD will receive apyUSD with yield attributes, derived from dividends from the underlying preferred shares.
The agreement explains that apxUSD is not directly backed by cash deposits, but rather by preferred equity-like assets. Therefore, during periods of significant market volatility, the price may temporarily fall below the peg, but such deviations do not indicate a failure of the mechanism.
The agreement states that there is an over-collateral buffer.
Apyx states that the value of its collateralized assets exceeds the circulating supply of apxUSD. This buffer first absorbs drawdowns in the underlying assets' market capitalization before being reflected in the stablecoin's price. Users can view the collateral status and supply comparison in real time within the application dashboard.
The agreement also cites STRC's historical performance, noting that such assets have traded below par value multiple times in the past, only to subsequently recover. Apyx believes that holders who understand the risk characteristics of these assets should view short-term deviations as normal fluctuations in this type of product.
Concerns about Morpho's liquidation have not grown significantly.
During the market volatility, some participants worried about a potential chain of liquidations in the Morpho lending market. In response, Apyx stated that the main apyUSD/apxUSD Morpho market pricing relies on the dividend accumulation mechanism, not the STRC spot price.
This means that even if STRC itself experiences price fluctuations, it will not directly affect the pricing of related oracles, thus preventing large-scale liquidations. The parties to the agreement stated that most concerns about a chain reaction of liquidations are unfounded.
However, this brief decoupling of apxUSD has still sparked discussions about investor confidence. If similar volatility recurs, the acceptance of stablecoins in the secondary market may remain under pressure.
