apyUSD

apyUSD is the yield token for apxUSD, built using the ERC-4626 vault standard.

Users deposit apxUSD into a permissionless vault and receive apyUSD in return. Token balances do not rebase. Instead, yield accrues through a gradually increasing exchange rate, meaning each apyUSD can be redeemed for more apxUSD over time.

Yield is generated from the protocol’s underlying collateral stack.

Key Information

• Underlying: apxUSD
• Standard: ERC-4626 vault (non-rebasing, accrual-based)
• Access: Permissionless; no KYB/KYC requirement
• Yield source: Dividends
• Distribution: Governed via on-chain parameters; rate may vary with market conditions
• Redemption: 1 apyUSD → apxUSD × exchangeRate (t ≥ 1)

Participation is restricted for users in certain jurisdictions. Users located in such jurisdictions will be prevented from accessing the Apyx frontend.

Redemption

Redemptions follow an asynchronous unlocking model (ERC-7540) and are not executed immediately.

The process consists of three steps: request, cooldown (approximately 20 days), and claim. Once a redemption request is submitted, a cooldown period begins during which the assets remain locked. After the cooldown period has elapsed, the user must submit a claim transaction to receive the redeemed assets.

Each user may have only one pending redemption request at a time. Adding assets to an existing request resets the cooldown period from the time of the update.

During the cooldown period, users will not receive yield on their apyUSD, with the apxUSD/apyUSD exchange rate being fixed.

Flexible Redemption

apyUSD redemptions support a more flexible redemption mechanism designed to improve liquidity and user optionality. When initiating a new redemption, users receive an onchain Unlock Receipt NFT representing their pending claim. Redemptions become claimable after 3 days, with an early redemption fee that declines linearly over time from 3.5% down to just 0.1%.

This mechanism allows users to:

• Exit faster when liquidity is needed
• Queue multiple unlock requests simultaneously
• Reduce fees by waiting longer before claiming

Looking ahead, redemption windows are expected to compress further as underlying digital credit instruments transition toward more frequent distributions.