Apyx's collateralized stablecoin STRC temporarily de-pegged, with the protocol team claiming this is a "functional feature" rather than a bug

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Golden Finance reports that on June 4, during a period when Bitcoin briefly fell below $63,000, the stablecoin apxUSD issued by the Apyx protocol and primarily collateralized by Strategy preferred shares STRC temporarily de-pegged, dropping to a low of $0.93.
Apyx said the fluctuation was not a vulnerability, but an expected performance of a preferred-share-collateralized stablecoin. Because apxUSD’s reserve assets are mainly made up of STRC preferred shares with a face value of $100, when STRC falls below face value in the secondary market, the market value of the reserve assets will decline accordingly, causing the stablecoin’s price to fluctuate.
The protocol said that its stability mechanism includes overcollateralization, a dividend adjustment mechanism, and buffers backed by cash and short-term US Treasury bonds. Data shows that since last August, STRC has fallen below face value four times, but ultimately rebounded to $100 each time.
In response to market concerns about Morpho’s lending market triggering a chain of liquidations, Apyx said its core apyUSD/apxUSD market mainly depends on the accumulation of dividend yields rather than the spot price of STRC, so related volatility will not trigger large-scale liquidations.
BTC-7.25%
MORPHO-8.89%
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