Apyx's apxUSD Stablecoin Experiences Brief Depeg Amid Market Volatility
Apyx's STRC collateralized stablecoin suffers a brief depeg. Protocol says its a feature, not bug

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Apyx's apxUSD stablecoin briefly fell to 93 cents during a dip in Bitcoin's value. The protocol asserts this volatility is expected due to its backing by preferred equity shares. Apyx maintains that its collateralization and dividend mechanisms are designed to manage such fluctuations.
- 01Apyx's apxUSD stablecoin dropped to 93 cents while Bitcoin fell below $63,000.
- 02The stablecoin is primarily backed by preferred equity shares from Strategy, which carry a $100 par value.
- 03Apyx emphasizes that the depeg is a normal occurrence due to the nature of its collateral backing.
- 04The protocol claims to maintain a collateral value exceeding the circulating supply of apxUSD.
- 05Apyx's model includes mechanisms to absorb market volatility and prevent cascading liquidations.
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Apyx's apxUSD stablecoin briefly fell to 93 cents on Wednesday amid a drop in Bitcoin's price, which fell below $63,000. Apyx asserts that this depeg is a typical behavior for a stablecoin backed by preferred equity rather than cash deposits. The apxUSD stablecoin is primarily supported by preferred equity shares from Strategy, which have a par value of $100. Apyx has a two-token system where apxUSD is the base stablecoin, while holders can earn yield through apyUSD, a yield-bearing savings token. The protocol claims that its collateralization strategy, which includes short-term U.S. Treasuries, ensures liquidity and reduces concentration risk. Apyx maintains that the collateral value exceeds the circulating supply of apxUSD, providing a buffer against market fluctuations. Despite concerns from market participants about the stability of the stablecoin, Apyx reassured users that the depeg was an expected outcome and not indicative of a failure in the system.
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