apxUSD
apxUSD is Apyx’s synthetic dollar backed by a diversified basket of low-volatility, variable-rate, preferred shares issued by industry leading Digital Asset Treasuries (DATs).
The same mechanism that underpins apxUSD also enables apyUSD, a yield asset that accrues rewards from dividends generated by the DAT preferred equity backing apxUSD. apyUSD is designed as the first Digital Credit yield asset, bringing offchain dividend income onchain for programmatic distribution.
apxUSD is intended to be used as both collateral and a quote asset across DeFi and CeFi, with long-term demand driven by utility rather than short-term incentives.
Collateral Allocation
The collateral backing apxUSD is dynamically allocated across preferred shares issued by various DATs.
The basket rebalances subject to issuer concentration, liquidity requirements for efficient execution, and coverage requirements that keep apxUSD overcollateralized. In redemption scenarios, the protocol liquidates preferred shares to USDC to settle redemption obligations; holders do not receive preferred shares directly.
Peg Stability Model
apxUSD maintains peg stability through four complementary mechanisms:
Preferred Shares Price-Stabilization Dynamics
Preferred shares used as collateral often include structural features that allow issuers to adjust dividend rates, helping keep trading prices near par.
Overcollateralized Issuance Framework
Redemptions occur at Redemption Value, which tracks the underlying basket. Total Collateral Value (the full reserve including the overcollateralization buffer) is published separately on the dashboard. The buffer grows through stress events rather than being drained by them
Cross-Market Arbitrage
Apyx may engage in arbitrage across multiple spot markets involving apxUSD to support its peg. Similar opportunities are also available to users whitelisted, allowing them to mint or redeem apxUSD to capture price differences across markets.
Derivative-Based Tail Hedging Strategies Apyx may deploy low cost, tail hedging strategies to reduce volatility in volatility spike scenarios where the preferred shares trade down significantly.
Minting and Redeeming
Eligible participants in permitted jurisdictions who are whitelisted, such as institutional market makers, may mint and redeem apxUSD through the protocol's designated issuance and redemption pathways. Redemptions are settled in USDC; the protocol does not transfer preferred shares directly to redeeming participants. In a drawdown scenario, the protocol would sell preferred share positions to USDC to facilitate redemption.
apxUSD grows through a demand-driven flywheel. When apxUSD trades at a premium relative to its backing, minters may mint additional apxUSD and purchase more preferred equity collateral. This expands the collateral base, deepens liquidity, and increases the dividend capacity that supports apyUSD.
General users can acquire apxUSD through permissionless external liquidity pools and swaps.
Eligible participants in permitted jurisdictions who are whitelisted Apyx, such as institutional partners and market makers, may mint and redeem apxUSD through the protocol's designated issuance and redemption pathways. Mint and redemption requests are processed quickly. To ensure stability, the protocol maintains a liquidity buffer sized against the largest historical TVL drawdowns observed in comparable stablecoins. Note that liquidity may be more limited outside of traditional trading hours and on weekends, though the buffer remains available at all times.
apxUSD is designed to trade between Redemption Value (a hard floor) and Total Collateral Value. Redemption Value moves with the underlying basket of preferred shares, dampened by the cash portion of the reserve. New apxUSD issuance is always priced at $1, giving the secondary market a consistent anchor.
Whitelisted participants can mint and redeem through the protocol's primary market at Redemption Value. There is also an RFQ (Request for Quote) redemption system that connects redemption requests with approved counterparties for competitive execution.
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