Is DODO (DODO) Halal or Haram?
Shariah compliance review of DODO (DODO) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
Analisys is similar to the one for Uniswap. DODO is a Decentralized Exchange (DEX) running on Ethereum and Binance Smart Chain. DODO also has a governance token. To participate in governance, users will have to convert DODO into vDODO at the fixed rate of 100 DODO = 1 vDODO. vDODO tokens will give holders dividends from trading fees and membership rewards. Redeeming vDODO tokens to DODO tokens will incur a variable exit fee. This is expected to encourage long-term membership. Besides governance, DODO tokens will have three new utilities for holders: - Crowdpooling - IDO allocations - Trading fee discounts
Staking verdict: Non-Comfortable
At this point users can not participate in Dodo staking, because there is no Proof-of-Stake protocol. However, DODO holders can provide liquidity and earn a share of the trading fees generated by the swaps that occur within the liquidity pool they contribute to. These fees are proportionally distributed based on the size of their contribution to the pool. Also, there is a way to deposit one's LP tokens to smart-contract and receive additional rewards for this. According to analisys of Marhaba DeFi platform, there is no problem using this type of farming, because it is a method of rewarding the users of the DEX for providing liquidity to the marker. <br><br>The other forms of deposit with fixed yield or deposits on CEX's that claim to be ""staking"" for this protocol is better to avoid, because it would not be actual Proof of Stake protocol.
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