The stablecoin apxUSD once experienced a dip to $0.93, with the protocol team stating it was part of the normal mechanism.

On June 4, during a stretch where Bitcoin briefly dipped below $63,000, apxUSD — the stablecoin issued by Apyx Protocol and backed primarily by Strategy priority shares (STRC) — briefly broke its peg, hitting a low of $0.93. Apyx clarified that this fluctuation wasn’t a bug, but rather an expected behavior for a stablecoin collateralized by priority shares. ApxUSD’s reserve assets are made up mostly of STRC priority shares with a $100 face value; when STRC’s secondary market price falls below that face value, the reserve’s market value shrinks, leading to swings in the stablecoin’s price. The protocol added that its stability mechanisms include over-collateralization, dividend adjustment tools, and a reserve buffer of cash and short-term Treasury bonds. Data shows that since last August, STRC has traded below its $100 face value four times — yet each instance ended with a rebound back to $100. In response to market worries about cascading liquidations in the Morpho lending space, Apyx said its core apyUSD/apxUSD market relies heavily on accumulating dividend yields rather than the STRC spot price, meaning such fluctuations won’t spark large-scale liquidations.