BlockBeats News, June 4th, during a period when Bitcoin briefly dropped below $63,000, the stablecoin apxUSD issued by the Apyx Protocol and collateralized primarily by Strategy priority shares (STRC) briefly went off-peg, plummeting to a low of $0.93.

Apyx stated that this fluctuation was not a bug but rather an anticipated behavior of a priority share-collateralized stablecoin. As the reserve assets of apxUSD are mainly composed of face value $100 STRC priority shares, when the STRC price in the secondary market falls below the face value, the reserve asset's market value decreases, causing fluctuations in the stablecoin price.

The protocol claimed that its stability mechanism includes over-collateralization, dividend adjustment mechanisms, as well as a cash and short-term Treasury bond reserve buffer. Data shows that since August last year, STRC has fallen below face value four times but has ultimately rebounded to $100 each time.

In response to concerns in the market about cascading liquidations in the Morpho lending market, Apyx stated that its core apyUSD/apxUSD market primarily relies on dividend yield accumulation rather than the STRC spot price, so such fluctuations would not trigger large-scale liquidations.