Apyx has released a 2.0 upgrade proposal to restructure the redemption mechanism to address stress testing and liquidity crisis risk.

June 16th: In a new official post, Apyx announced it’s launching its "Apyx 2.0" framework following its largest stress test since last June. The protocol underwent a full overhaul of its redemption mechanism, collateral structure, and transparency metrics to fix prior issues like price dislocation and redemption pressure. After launching in February and growing to roughly $500 million in circulating volume, Apyx recently faced steep market headwinds. Its core collateral asset STRC saw its worst drawdown ever, and apxUSD briefly dipped to around $0.90 on secondary markets. Even amid a surge in large redemption requests, the protocol maintained overall solvency. The stress test uncovered a core flaw: the design of its excess collateral buffer zone. Apyx explained that under extreme market conditions, allowing redemptions based on Net Asset Value (NAV) creates a structural incentive for “early redeemers to arbitrage at later holders’ expense” — speeding up capital outflows and eroding the system’s buffer. To address this, Apyx 2.0 introduces a “Dual Value System” replacing the old single NAV framework: - **Redemption Value** will serve as the unified pricing benchmark for all minting and redemption actions, applying to both stressful and normal market conditions. - **Total Collateral Value** will display the full reserve size, including the excess collateral buffer. The price gap between these two metrics is a transparent, visible risk buffer — but it will no longer be used for par-value redemptions. This eliminates the “risk-free arbitrage window” and prevents systemic runs during market downturns. The adjustment shifts the buffer from a “priority target for extractable arbitrage” to a “continuously accumulating stabilizer,” per Apyx. Additionally, Apyx plans to roll out an RFQ (Request for Quote) mechanism, letting users trade directly with counterparties via quote matching during periods of market stress. This aims to boost liquidity exit efficiency and reduce the impact of automated redemptions on asset prices.