diff --git a/npm/ng-packs/packages/schematics/src/commands/api/index.ts b/npm/ng-packs/packages/schematics/src/commands/api/index.ts
index 956e91e0b1..24e0f816af 100644
--- a/npm/ng-packs/packages/schematics/src/commands/api/index.ts
+++ b/npm/ng-packs/packages/schematics/src/commands/api/index.ts
@@ -23,13 +23,15 @@ import {
   getRootNamespace,
   interpolate,
   ModelGeneratorParams,
+  removeDefaultPlaceholders,
   resolveProject,
   serializeParameters,
 } from '../../utils';
 import * as cases from '../../utils/text';
 import { Schema as GenerateProxySchema } from './schema';
 
-export default function(params: GenerateProxySchema) {
+export default function(schema: GenerateProxySchema) {
+  const params = removeDefaultPlaceholders(schema);
   const moduleName = strings.camelize(params.module || 'app');
 
   return chain([
diff --git a/npm/ng-packs/packages/schematics/src/commands/proxy/index.ts b/npm/ng-packs/packages/schematics/src/commands/proxy/index.ts
index d597f720cd..ddbbd68caa 100644
--- a/npm/ng-packs/packages/schematics/src/commands/proxy/index.ts
+++ b/npm/ng-packs/packages/schematics/src/commands/proxy/index.ts
@@ -13,11 +13,13 @@ import {
   createApiDefinitionSaver,
   getApiDefinition,
   getSourceUrl,
+  removeDefaultPlaceholders,
   resolveProject,
 } from '../../utils';
 import { Schema as GenerateProxySchema } from './schema';
 
-export default function(params: GenerateProxySchema) {
+export default function(schema: GenerateProxySchema) {
+  const params = removeDefaultPlaceholders(schema);
   const moduleName = strings.camelize(params.module || 'app');
 
   return chain([
@@ -32,7 +34,7 @@ export default function(params: GenerateProxySchema) {
         data,
         `${targetPath}/shared/api-definition.json`,
       );
-      const createApi = schematic('api', params);
+      const createApi = schematic('api', schema);
 
       return branchAndMerge(chain([saveApiDefinition, createApi]));
     },
diff --git a/npm/ng-packs/packages/schematics/src/utils/common.ts b/npm/ng-packs/packages/schematics/src/utils/common.ts
index 8a5aa5fd93..ff01bd27c5 100644
--- a/npm/ng-packs/packages/schematics/src/utils/common.ts
+++ b/npm/ng-packs/packages/schematics/src/utils/common.ts
@@ -23,3 +23,13 @@ export function readFileInTree(tree: Tree, filePath: string): ts.SourceFile {
   const text = buffer.toString('utf-8');
   return ts.createSourceFile(filePath, text, ts.ScriptTarget.Latest, true);
 }
+
+export function removeDefaultPlaceholders<T>(oldParams: T) {
+  const newParams: Record<string, any> = {};
+
+  Object.entries(oldParams).forEach(([key, value]) => {
+    newParams[key] = value === '__default' ? undefined : value;
+  });
+
+  return newParams as T;
+}