Synthetic stablecoin backed by preferred shares slips to $0.93 on June 4
apxUSD, a synthetic stablecoin issued by Apyx and backed by preferred shares from Digital Asset Treasury companies, fell below its $1 reference value on June 4, trading as low as $0.93 as Bitcoin declined near $63,000.
The depeg event occurred during a broader market pullback. Bitcoin fell 5.77% over the 24-hour period, and apxUSD traded between $0.9094 and $0.9984, with $74.6 million in daily volume across venues including Curve, Pendle, and Morpho Blue, according to Bitget and CoinGecko data.
The slip exposed a structural vulnerability in apxUSD’s collateral model. Apyx’s protocol documentation states that “apxUSD can trade above or below a $1 reference value,” but the token’s backing relies heavily on Strategy’s STRC preferred stock, a variable-rate perpetual instrument with a $100 stated amount and an 11.50% annual dividend rate adjusted monthly. Strategy, which holds 843,706 BTC as of May 31, sold 32 BTC for approximately $2.5 million between May 26 and May 31, according to a Form 8-K filing disclosed June 1.
Strategy’s STRC preferred shares are structured to encourage trading near par through monthly dividend adjustments, but the securities carry explicit disclaimers. Strategy’s STRC page warns that “returns, liquidity, future performance, and cash dividends are not guaranteed; preferred securities lack collateral claims on Strategy’s Bitcoin holdings.” This distinction matters: STRC holders have no direct claim on Strategy’s BTC reserves, only on dividend payments and redemption proceeds.
Apyx describes apxUSD as backed by a basket of preferred shares with overcollateralization, cash and Treasury buffers, cross-market arbitrage, and possible hedging strategies. The protocol documentation also notes that “apxUSD backing can be dynamically allocated across DAT preferred shares with cash and short-term Treasuries as liquidity buffer.” However, STRC remains the core collateral asset in the current model.
The depeg contrasts with traditional stablecoins like USDC, issued by Circle. Circle’s reserve model holds USDC backing in cash, short-dated US Treasuries, and overnight Treasury repurchase agreements. “USDC is redeemable 1:1 for dollars and backed by highly liquid cash and cash-equivalent assets,” according to Circle’s reserve model description.
Pendle and Curve represent the largest venues for apxUSD trading. Pendle holds $118.22 million in apxUSD total value locked, representing 64.62% of listed active apxUSD TVL, according to DefiLlama. Curve holds $44.63 million, or 24.39% of listed active TVL, with the apxUSD/USDC pair generating $48.5 million in 24-hour volume.
Apyx acknowledges friction in the redemption process. The protocol’s FAQ states that “users who acquire apxUSD via DEX swaps may experience slippage when liquidity is low” and that “apyUSD exits follow an asynchronous model with an approximately 30-day cooldown.” Authorized institutional participants have direct minting and redemption access through the protocol, with settlements in USDC, but retail holders must route through decentralized exchanges or centralized venues like Kraken.
The June 4 depeg raises questions about the sustainability of preferred-share collateral in DeFi stablecoins. As of the last reported figures, the broader tokenized RWA market totals approximately $30 billion, with $2.47 billion in active RWA deployed in DeFi. apxUSD’s exposure across Pendle, Curve, and Morpho Blue demonstrates the token’s integration into core DeFi infrastructure, but the preferred-share backing model introduces volatility tied to the issuing company’s asset performance and dividend sustainability.
