apyUSD (APYUSD)

The mechanism is similar in concept to other exchange-rate-based yield tokens in DeFi, where holders’ balances do not need to increase for value to accrue. Users deposit apxUSD into the Apyx vault and receive apyUSD. As cash dividends from preferred equity holdings are incorporated into the vault, the conversion rate between apyUSD and apxUSD is expected to rise, giving holders passive exposure to the yield produced by the protocol’s collateral base.

Apyx focuses on preferred shares issued by publicly listed Digital Asset Treasury companies, which are firms that hold crypto assets and may issue income-paying securities. The protocol says custody of the underlying collateral is supported by institutional providers including Anchorage Digital and BitGo. apyUSD is also designed for wider DeFi use: integrations referenced by the project include Pendle for yield tokenisation and trading, and Morpho for lending markets where vault tokens can potentially be used as collateral. This positions apyUSD as the income-focused counterpart to apxUSD’s role as a liquid dollar asset.