Apyx's apxUSD stablecoin briefly slipped to 93 cents on Wednesday, deviating from its 1:1 dollar peg as Bitcoin dropped sharply. The stablecoin is backed primarily by Strategy's STRC preferred equity shares with a $100 par value. Apyx explained that this is expected behavior for a stablecoin backed by preferred equity rather than cash deposits, noting that STRC has mean-reverting properties and has bounced back from similar episodes four times since August last year. The protocol maintains a collateral buffer to absorb volatility and said concerns about cascading liquidations in Morpho lending markets are misplaced, as its main apyUSD/apxUSD market is driven by dividend accrual, not STRC's spot price.

Key facts

• apxUSD stablecoin slipped to $0.93 on Wednesday.
• Backed by Strategy's STRC preferred equity shares.
• Apyx says depeg is expected; STRC historically mean-reverts.
• Collateral buffer exists; Morpho liquidation fears misplaced.

KeyAudit data perspective