Buy & Swap apxUSD (Ethereum) (APXUSD)

A dollar built on preferred stock, not cash

Apyx documentation is explicit that apxUSD is not a traditional fiat-backed stablecoin like USDT or USDC. Instead, it calls apxUSD the first Dividend-Backed Dollar protocol, backed by variable-rate perpetual preferred stock, with STRC, issued by Strategy (the company formerly known as MicroStrategy, ticker MSTR), named as the flagship instrument.

This is a genuinely new category of collateral for a dollar token. Perpetual preferred shares like STRC pay a dividend and trade on public markets, but they are equity-adjacent instruments issued by companies whose own balance sheets are concentrated in Bitcoin. apxUSD's reserve is therefore a basket of claims on dividend income from that specific corner of the market, not a claim on a bank deposit or a government bond.^{[1], [2]}

Two tokens, one reserve

Apyx runs a two-token model. apxUSD is described as a synthetic, non-yield-bearing stable asset meant to provide liquidity and act as collateral across DeFi and CeFi, intended to be overcollateralized at all times. apyUSD is the companion yield asset, built by locking apxUSD, and it accrues the dividends that the preferred-share basket generates.

The protocol documentation walks through four components that make this work: users who deposit USDC to mint apxUSD, an offchain treasury that buys the preferred shares and converts dividends into distributable yield, an onchain vault that passes that yield to apyUSD holders by raising its redemption value over time, and the external stock market where the preferred shares themselves are bought and held in custody.^{[3], [4]}

What is actually in the basket

Collateral allocation is dynamic rather than fixed to a single issuer. Apyx's documentation says the basket is rebalanced according to issuer concentration limits, the liquidity needed to execute trades efficiently, and coverage requirements meant to keep apxUSD overcollateralized. Initially, the basket is described as including STRC and SATA, Strategy's two variable-rate preferred share issues, with additional assets expected to be added over time.

Holders of apxUSD do not have a direct claim on those preferred shares. If apxUSD is redeemed, the documentation states that the protocol liquidates preferred shares into USDC to settle the redemption, rather than handing holders the underlying securities. That distinction matters: the token's value tracks the reserve, but the reserve itself is a step removed from the holder.^{[5], [6]}

How the peg is meant to hold

Apyx's documentation lays out four mechanisms it says work together to keep apxUSD near its dollar peg. The first is a structural feature of the preferred shares themselves: many allow the issuer to adjust the dividend rate, which the documentation says helps keep the shares trading near par and, by extension, supports apxUSD's backing. The second is the overcollateralized issuance framework, where redemptions happen at a published Redemption Value tracking the underlying basket, while a separate Total Collateral Value figure, including the overcollateralization buffer, is published on a dashboard; the buffer is described as growing through stress events rather than being drawn down by them. The third mechanism named is cross-market arbitrage, which the documentation says Apyx may engage in. New issuance of apxUSD is priced at a flat one dollar, while redemptions track the basket's actual value, and the protocol states it keeps minting and redemption costs to what is operationally necessary rather than a profit source.

The documentation also commits to regular third-party reporting on the offchain-held preferred assets, since the collateral sits in custody outside the chain rather than in a smart contract that can be inspected directly.^{[7], [8]}

Multichain by design

Apyx documentation lists apxUSD as live on four networks: Ethereum, Base, BNB Chain and Solana, with separate contract addresses published for each. That spread means apxUSD is meant to be usable as collateral and a quote asset across multiple DeFi ecosystems rather than confined to a single chain.^[9]

A stress test and a longer runway

Apyx's own blog describes STRC, the core reserve asset behind apxUSD, going through what the company calls the deepest and longest drawdown of its short trading history. Apyx states the protocol absorbed that stress without incident, while also saying the episode revealed gaps the team wanted to close before pushing further. That account, published by the project itself, is the clearest real-world test of the collateral model disclosed so far, and it is reported here as Apyx's own characterization rather than independently verified.^[10]

What is not yet public

Apyx's documentation does not name the individuals behind the protocol, disclose whether apxUSD's reserve or smart contracts have been through an independent security audit, or publish a full list of every preferred-share issuer the collateral basket may expand to beyond STRC and SATA. UNKNOWN from official sources: team identities, audit status, and the eventual full composition of the collateral basket.

The documentation also states that participation is restricted in certain jurisdictions, including the United States, the European Union and the European Economic Area, without detailing the legal basis for apxUSD's own classification in those jurisdictions.^{[12], [11]}