MDLR guides · 01EN
What MDLR is, in one page
MDLR aims to be worth one US dollar. It is built from three parts and two rules.
Gold
MDLR is minted against gold delivered to a reserve contract. On a limited mainnet that is planned to be PAXG or XAUT, gold tokens from other issuers, and later MGLD, a token for allocated bars held on trust. 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. On testnet it is open on the Pactol test venue.
A buffer
The reserve targets 1.08 dollars per MDLR. Below 1.02, new minting stops until the ratio recovers. The buffer is issuer capital, and because a mint adds equal value to reserve and supply, it also sets how much MDLR can be minted.
Redemption
Anyone can return MDLR and receive the reserve asset at the oracle price, less 0.10%: a dollar's worth per MDLR while the reserve covers supply. That is what holds the price near a dollar. Below 1.00, each redemption is paid its pro rata share: the amount after the fee times the ratio, never more than one dollar per MDLR, so no holder gains by leaving first.
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 MDLR 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 MDLR is not sold and has no value.