USDMD guides · 01EN
What USDMD is, in one page
USDMD aims to be worth one US dollar. It is built from three parts and one promise.
Gold
USDMD is minted against gold delivered to a reserve contract. On mainnet that is allocated physical gold in non-US vaults. On testnet it is MockXAU, which is not gold.
A short hedge
An equal short gold perpetual cancels the gold's price exposure, so the reserve is worth a steady number of dollars.
A buffer
The reserve targets 1.08 dollars per USDMD. Below 1.02, new minting stops until the ratio recovers.
Redemption
Anyone can return USDMD and receive the reserve asset at the oracle price, less 0.10%. That is what holds the price near a dollar.
No freeze
The token has no owner and no way to freeze or take anyone's balance. Only the minting and redemption rules can change, through a public timelock.
Note
Test USDMD has no value. It exists so the mechanism can be tried and checked in public before any real money is involved.
Nothing on these pages is an offer, a solicitation or a recommendation to buy, sell or hold any asset, in any jurisdiction. Test USDMD is not sold and has no value.