The assets financed by the repo market.
Protocol capital layer
What is the MEDICI Token?
$MEDICI is not required to borrow, lend, or settle. It is used by participants who want to provide security, originate markets, earn productive incentives, and govern protocol risk.
01
Three-layer model
MEDICI is the capital layer,
not the settlement layer.
Medici Markets separates collateral, settlement, and protocol capital so borrowers and lenders can use the market without unnecessary token friction.
The funding and settlement asset used inside repo transactions.
The economic participation and security layer behind the market.
What MEDICI is not
A token should not be inserted where market design does not need it.
Not the settlement assetNot required to borrowNot required to lendNot inserted into every repo transaction
02
What MEDICI does
The token coordinates the participants
behind the market.
MEDICI becomes relevant when a participant wants to take an economic role in the infrastructure that makes Medici Markets liquid, secure, reliable, and scalable.
MEDICI can be economically committed to defined protocol protection mechanisms.
Market originators can post MEDICI when they request new collateral or tenor markets.
Productive liquidity providers can use MEDICI commitment to qualify for better incentive weights.
Long-duration contribution can feed a Capital Score that is harder to buy instantly.
Risk and capital allocation can be governed by economically committed MEDICI, not only liquid balances.
03
Productive staking
Holding is passive.
Contributing is productive.
Medici does not need circular staking where a participant stakes a token only to receive more of the same token. The useful pattern links MEDICI commitment to useful protocol work.
Stake MEDICI+Perform Useful Protocol Function→Economic Reward
Capital that makes defined funding markets usable.
Committed capital that accepts explicit loss-event risk.
Bonded requests for new collateral, tenor, or funding books.
Voting power tied to economic commitment and contribution.
04
Security and bonds
MEDICI strengthens the protocol
after collateral and reserves.
The token is not a replacement for sound collateralization, haircuts, margin, or reserves. It can act as an additional committed capital layer for specific risk-bearing functions.
L1Transaction Collateral
L2Haircuts and Margin
L3Protocol Reserves
L4MEDICI Backstop Capital
Market originationMarket Creation → Capital Commitment → Economic Accountability
A participant requesting a new market can be required to bond MEDICI. If the market operates correctly, the bond can be released. Under narrowly defined malicious or economically damaging conditions, part or all of the bond can be forfeited.
Whitepaper connection
For the formal model, read MEDICI Protocol Capital.
This page is the accessible website explanation. The whitepaper section contains the economic notation for incentive weights, the Backstop Vault, market origination bonds, Capital Score, participation ratios, capital efficiency, and governance.