apxUSD Overview
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 savings asset that accrues rewards from dividends generated by the DAT preferred equity backing apxUSD. apyUSD is designed as the first Digital Credit savings 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 redemptions, and coverage requirements that keep apxUSD overcollateralized.
Learn more about the underlying collateral.
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
The protocol maintains collateral value in excess of apxUSD in circulation, with this surplus serving as a buffer to absorb volatility. Users can compare the collateral position against the apxUSD supply in real time through the dashboard.
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.
Learn more about the Peg Stability Model.
Minting, and Redemption
Eligible participants in permitted jurisdictions who are whitelisted may mint and redeem apxUSD through the protocol’s designated issuance and redemption pathways.
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 close to $1 at all times. To support this, the protocol will incentivize an apxUSD/USDC liquidity pool on Curve and aims to secure CEX listings where users can trade apxUSD against stable and dollar pairs. 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.
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