FAQ

Frequently Asked Questions

General

What is Apyx?

APYX is a synthetic dollar protocol that transforms digital credit into programmable money. The protocol delivers double-digit yields by channeling dividend payments from underlying credit assets into onchain liquidity.

What are the different assets in the ecosystem?

The protocol uses four core assets:

• apxUSD: The ultimate programmable money solution reinvented by DAT collateral.

• apyUSD: The yield-bearing token received when you lock apxUSD. Yield is sourced from dividends paid by the DAT preferred shares backing apxUSD and incremented linearly to increase price of apyUSD.

• Points: Points are earned through qualifying actions such as holding, locking, committing assets, providing liquidity, or trading yield-based tokenized products.

• APYX: The future governance token.

What is apxUSD?

apxUSD is the protocol’s synthetic dollar. It is designed to function as a liquidity layer across DeFi while maintaining a stable value. However, unlike USDT or USDC, it is not simply 1:1 backed by cash in a bank. It is backed by an overcollateralized surplus of high-quality, low-volatility assets like STRC. This structure ensures a margin of safety even during market stress

What is apyUSD?

apyUSD is a yield-bearing token, minted when apxUSD is staked into the permissionless Apyx vault. As yield is generated from dividends from the preferred shares, the value of apyUSD grows linearly.

How does apyUSD earn yield?

Yield is generated from the dividend produced by the diverse portfolio of DAT preferred shares. This value is distributed to apyUSD holders through an increasing exchange rate.

What is Apyx and how is it different from stablecoins?

Apyx is a synthetic dollar protocol built to bridge the gap between traditional finance and DeFi. Unlike standard stablecoins backed by idle fiat cash, the Apyx synthetic dollar (apxUSD) is overcollateralized by dividend-bearing DAT preferred shares. This design allows Apyx to transform offchain dividend cash flows into programmable, onchain yield, offering users a unique way to access the productivity of real-world financial markets

How is Apyx different from other synthetic dollars?

While traditional synthetic dollars rely on market-volatile derivatives, Apyx bridges regulated equity with onchain efficiency. This structure provides reliable yield from corporate dividends rather than funding rates and ensures safety by holding Nasdaq-listed preferred shares instead of managing complex hedges on CEXs. It also delivers predictable growth via a monthly vesting contract that streams yield every second, ensuring the value of apyUSD increases evenly.

apxUSD

How can I get apxUSD?

For the vast majority of users, acquiring apxUSD is seamless and does not require complex minting procedures.

• For General Users: You can buy apxUSD directly on the secondary market using the Apyx Swap tab in the dApp. This routes your transaction through liquidity pools (like Curve) to swap USDC for apxUSD.

• For Permissioned Minting: This is a permissioned process reserved for institutional partners; please contact the Apyx team for more information.

Is apxUSD overcollateralized?

Yes, apxUSD is overcollateralized to ensure a safety buffer and safeguard its peg to the US dollar as best as possible.

What can I do with apxUSD?

apxUSD can serve multiple purposes within the DeFi ecosystem. Hold as store of value → Earn points (5x multiplier, time-weighted)

• Lock apxUSD → Receive apyUSD and earn yield (1x multiplier)

• Commit apxUSD → Earn 10x points multiplier

• Participate in whitelisted DeFi → Earn points with bonus multiplier and yield (Curve LP, Pendle, etc.)

What is the apxUSD 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.

What does committing apxUSD do?

Committing apxUSD means you earn a 10x points multiplier in exchange for agreeing to a 30-day cooldown period when uncommitting. While your apxUSD is committed, you cannot use it elsewhere until you uncommit it.

How does apxUSD aim to maintain its peg?

Apyx maintains stability through a combination of over-collateralization, a cash & treasuries buffer, and arbitrage incentives executed by whitelisted participants to address secondary market deviations.

Lock & Unlock

What is locking and unlocking?

Locking apxUSD into the Apyx vault will provide you with apyUSD. When you unlock your apyUSD, you will receive more apxUSD than you had previously locked due to the accrued yield. You do not accrue yield during the cooldown period.

How long is the cooldown for unlocking?

Unlocking is an asynchronous process that takes approximately 30 days.

How do I unlock my apyUSD?

To convert your yield-bearing apyUSD back into the synthetic dollar apxUSD, you must first unlock it. This process consists of three steps: submitting an Unlock Request, waiting for the mandatory cooldown period to end, and finally clicking Claim to receive your tokens.

What happens if many users unlock at once?

Even when a large number of users process unlocks, there will be no issues with unlocking apyUSD. The redemption will not exceed approximately 30 days.

What happens if I add more to my unlock request?

You can only have one pending unlock request at a time. Adding more apyUSD to an existing request will reset your 30-day cooldown back to the beginning.

Yield & Pips (Point Program)

How do I start earning yield?

You must lock your apxUSD into the Apyx vault to instantaneously receive the yield-bearing apyUSD. Note that first-time users must complete a two-step transaction: Approve apxUSD, then Confirm the Lock.

What are Apyx Pips?

Pips is the points program for Apyx. A Pip is equivalent to a point and represents your participation and engagement within the ecosystem.

How can I calculate my potential earnings?

Our APY Calculator on the Locking page allows you to input an amount of apxUSD and see a 1-year yield projection based on current rates.

Do my apyUSD rewards rebase or auto-compound?

Balances do not rebase. Instead, yield is directly accrued into the vault as apxUSD. As yield accrues to the vault, the exchange rate of apyUSD increases relative to apxUSD. When you redeem your tokens, you will receive more apxUSD than you initially deposited.

Is there a minimum amount required to earn yield?

There is no minimum to start earning yield with apyUSD. However, users may keep in mind the potential gas when locking.

How do I earn points?

Points are earned by holding or participating in the ecosystem:

• Holding apxUSD: 5x Pips Multiplier.

• Locking for apyUSD: 1x Pips Multiplier (but you also earn yield).

• Commit apxUSD (30-day opt-in): 10x Pips Multiplier on apxUSD (capped at $100M).

• Whitelisted DeFi: Bonus Pips multipliers (up to 16x) for positions like Curve LP or Pendle.

For more information, refer to the Apyx Rewards section.

Are there extra points for referrals?

Referrers earn an additional 5% of the points earned by referred users. Referral rewards are capped at 100% of the referrer’s own points, and no additional bonus is granted for using a referral link.

When does Season 1 end?

Season 1 concludes when the protocol reaches $1B in Total Value Locked (TVL) or after 12 weeks, whichever happens first.

Do I earn more points for holding apyUSD?

Actually, holding apxUSD (5x) earns more points than apyUSD (1x). You must choose: maximize points (hold apxUSD) or prioritize Yield (lock for apyUSD).

Why have my rewards stopped updating?

There are many possibilities as to why rewards have stopped updating:

• You exited all of your DeFi positions.

• Rewards dashboard is not showing updated values as it only updates once daily.

• You have requested to unlock your apyUSD. apyUSD that is in the process of unlocking do not earn rewards.

• From time to time, a UI bug may occur. In such cases, our team works to resolve it as quickly as possible, and rest assured, users will continue to earn rewards without interruption.

Do I need to commit my Curve LP tokens to earn points?

Yes, users must commit their LP tokens to earn points. If the LP tokens are not committed, users will not earn the points. Only the swap fees.

Do Pendle PT positions earn points?

No, part of Pendle's design is users sacrifice yield and rewards when entering a PT position, receiving a fixed yield in return.

Troubleshooting & Fees

What do these error messages mean?

• CooldownNotComplete: You are attempting to claim your apxUSD before the 30-day wait period is over.

• Denied: Please go to our Discord and ask for support regarding Denied errors. Screenshots and a detailed report will help in pinpointing the error.

Are hardware wallets supported?

Yes, Apyx supports hardware wallets.

What should I do if I have a problem?

We recommend reaching out to us in our official Discord with as much detail as possible(wallet address, tx IDs, screenshots, etc). We will never personally DM you or redirect you to another Discord.

How long does it take to get a response after I report an issue?

We work hard to reply as quickly as we can. In most cases, you’ll hear back from us within 1–3 days. However, more complex issues (especially those requiring bug fixes) may take a bit longer depending on our current workload and the time needed to properly resolve them.

Are there any additional fees while using the product?

The only fee is a minimal redemption fee when converting apyUSD to apxUSD to cover operation costs.

Security & Risks

i. Liquidity Risk

What are the liquidity risks of apxUSD and apyUSD?

• apxUSD Liquidity: Most users acquire apxUSD through DEX swaps. If DEX liquidity is low, users may experience high slippage when buying or selling large amounts.

• apyUSD Exit Delay: Unlocking apyUSD is an asynchronous process with a mandatory cooldown period (~30 days). This means you cannot instantly access the underlying apxUSD in the event of high market volatility.

What happens if I add to my unlock request during the cooldown?

Adding more apyUSD to an existing pending unlock will reset the entire cooldown period for the total amount.

Who assumes the cost of slippage?

Users assume the cost of slippage for all DEX-based entries and exits. The Apyx Swap tab is routes transactions efficiently to help minimize slippage.

ii. Collateral Risk

What happens if the value of the preferred shares fluctuates?

The Apyx protocol is explicitly engineered to absorb these fluctuations through a mandatory overcollateralization buffer designed to act as a margin of safety against market stress. Furthermore, the preferred shares themselves feature an embedded economic mechanism that increases dividend yields during price dips, creating arbitrage opportunities that incentivize the market to restore the asset's value

How does the protocol manage yield distribution risks?

Yield is deposited into a vesting contract and distributed linearly over ~28 days. This smooths out yield and prevents sudden APY spikes, but it also means yield is not realized instantly.

What are the variables of apyUSD value growth?

apyUSD value grows through an exchange rate mechanism. If the dividends do not generate sufficient yield, the exchange rate may stagnate. Users can view the performance metrics directly on the app.

What specific assets act as collateral?

apxUSD is backed by a diverse portfolio of DAT preferred shares. An example allocation can be viewed in the docs under “Example allocation”.

Is the collateral susceptible to Bitcoin or market price crashes?

While preferred shares are more senior than common stock, they are still equities. A significant downturn in the crypto industry could affect the dividend-paying ability of the underlying companies, impacting the protocol's yield source. However, several incentive measures are used to provide stability.

iii. Custody Risk

How is apxUSD secured and verified?

Because apxUSD is backed by offchain assets, Apyx implements a "don't trust, verify" standard. The protocol provides the following transparency measures:

• Third-Party Attestations: Apyx obtains monthly accounting attestations from a PCAOB-registered audit firm.

• Assertion-Based Reporting: These are examination-level reports, providing stronger assurance than standard "confirmation emails" or simple screenshots.

• Real-Time Dashboard: Users can monitor capital deployment and current reserve positions directly through the dApp dashboard.

How is the collateral custodied?

The custody is managed by multiple parties and MPC keys are managed by both Apyx and partners, no singular entity has the ability to mismanage the funds.

Is it possible for the team to spontaneously remove collateral?

As the custody of the collateral is managed by multiple parties, and the MPC keys are managed by both Apyx and the custody solution partners, no singular entity has the ability to mismanage the funds.

Where can I see the protocol's backing?

The Apyx dashboard provides a view into capital deployment and the current reserve position.

Is the protocol audited?

Yes. Apyx prioritizes security through comprehensive, chronological audits performed by leading industry experts(such as Zellic and Certora). This page can be accessed under Technical Overview in the Docs.

How is the price of apyUSD calculated?

The redemption value is calculated based on the exchange rate at the moment you submit your request to unstake. You receive your principal plus the value increase accrued up to that specific moment. This locks in your rate before the cooldown begins, ensuring fairness

What backs the apxUSD 1:1 peg?

Stability is supported by an overcollaterized reserve of DAT preferred shares. You can view the Reserves Page in the app to see the current Total Reserves, Reserve Ratio, and a breakdown of the asset types backing the protocol.