Apyx's apxUSD Stablecoin Briefly Depeg to $0.93 on June 4 as Bitcoin Falls Below $63K

According to BlockBeats, apxUSD, a stablecoin issued by the Apyx protocol and collateralized primarily by Strategy preferred shares (STRC), briefly depegged to $0.93 on June 4 as Bitcoin briefly fell below $63,000. Apyx stated the depegging was not a bug but the expected behavior of preferred share-backed stablecoins; as STRC trades below its $100 par value in secondary markets, the reserve asset value declines, causing price volatility. The protocol operates using over-collateralization, dividend adjustment mechanisms, and cash/short-term Treasury reserves as buffers.

Historical data shows STRC has fallen below par four times since August last year but each time recovered to $100. Addressing concerns about cascading liquidations in Morpho lending markets, Apyx clarified that its core apyUSD/apxUSD market relies primarily on dividend yield accumulation rather than spot STRC prices, making large-scale liquidations unlikely from such fluctuations.