Is DAI (DAI) Halal or Haram?
Shariah compliance review of DAI (DAI) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Non-Comfortable
MakerDAO is an Ethereum-based protocol that issues a Dai stablecoin and provides collateral loans without an intermediary. When a loan is taken on MakerDAO, a DAI is created. These are users of the currency borrowing and repaying debt. The platform is used for interest-bearing loans, owning MKR is not Shariah compliant. The interest on these loans is paid through a stability fee. This stability fee should not be confused with a service fee or a fee for using the Maker Vault.
Staking verdict: Non-Comfortable
DAI lacks a conventional reward system or direct economic incentives, as its coin supply is managed via a smart contract. There is no mining or staking in this protocol. Any instrument that claims to be "staking" for DAI token is not legitimate, which is why it is impermissible to use. <br><br>Given our conclusion under Shariah standards regarding the permissibility of buying and selling the DAI stablecoin, any other instrument that involves DAI is deemed impermissible to use.
Browse all Shariah-compliant cryptocurrencies on the EthicalNode halal crypto screener.