Apyx releases plan for 2.0 upgrade to restructure the redemption mechanism in response to stress tests and liquidity squeeze risks.
BlockBeats reported that on June 16, Apyx officially launched the “Apyx 2.0” framework after undergoing the largest stress test since June. The framework systematically restructures the redemption mechanism, collateral structure, and transparency indicators to address previous risks of price depegging and redemption runs.
Apyx stated that, after the protocol went live in February and expanded to a circulating scale of about $500 million, it recently faced significant market pressure: the STRC (its core collateral asset) experienced its largest historical drawdown, apxUSD briefly dropped to about $0.90 on secondary markets, and the protocol handled a large number of redemption requests, but overall maintained solvency.
This stress test exposed that the core issue lay in the mechanism design of the over-collateralization buffer. Apyx pointed out that, in extreme market conditions, if redemptions are allowed according to net asset value (NAV), it creates a structural incentive of “early redeemers arbitraging while later holders bear the losses,” thus accelerating capital outflows and eroding the system buffer.
To address this, Apyx 2.0 introduces a “dual value system” to replace the previous single NAV framework. In the new system, “Redemption Value” will serve as the unified pricing benchmark for all minting and redemptions and applies in both stressed and normal market conditions; while “Total Collateral Value” is used to display the total reserve scale, including the over-collateralized buffer.
The protocol emphasized that the difference between the two is the transparent and visible risk buffer, but this buffer is no longer used directly for face-value redemptions, thereby eliminating the “risk-free arbitrage window” and avoiding systemic runs during market downturns. Apyx stated that this adjustment turns the buffer from a “priority arbitrage target” into a “continuously accumulating stabilizer.”
Additionally, Apyx plans to introduce an RFQ (request-for-quote) redemption mechanism, allowing users to directly trade with counterparties through a quote-matching method during periods of market stress, in order to improve liquidity exit efficiency and reduce the price impact of automated redemptions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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