Structured credit offerings marketed as "stablecoins" is insane. I am sure many of the holders have no clue as to what they actually own here. The gaslighting in this X article is truly remarkable.
"And the yield mechanism is a one-way ratchet: it only ingests realized cash dividends and does not reference STRC's market price, meaning the apyUSD exchange rate relative to apxUSD goes up when dividends are loaded but never goes down due to mark-to-market movements in the underlying shares."
Have you looked at the apyUSD chart? If apxUSD goes to 0, what is apyUSD worth? 100% of 0 is....
"Therefore, the protocol attempts to buy back apxUSD at below the net asset value."
Solvency issues? Let's plug the hole by putting the protocol's toxic asset on the protocol's own balance sheet! Wrong-way risk, brilliant!
"Some have seen the large "Cash & Equivalents" category and assumed that the entire amount represents liquid reserves sitting alongside the STRC position. That is not what the number represents. The Cash & Equivalents category currently includes inventory: apxUSD that has been pre-minted via multisig but has not yet been sold into the market."
Ahh ya uhhh sorry guys - our bad! Our 100% verifiable proof of solvency metric actually includes the apxUSD that we minted out of thin air. Wrong-way risk x2!
@SmallCapScience This only applied to expiration dates of 2/17 and 2/23. You could still get exposure via:
Spot
Futures
ETFs
Other options exchanges
Literally any other options contracts on MIAX besides these two expiration dates
Crypto-native perps
But ya go off π anything for clicks