Is Mountain Protocol USD (USDM) Halal or Haram?
Shariah compliance review of Mountain Protocol USD (USDM) by Islamic finance scholars at EthicalNode, with separate verdicts for trading and for staking.
Trading verdict: Comfortable
USDM is a stablecoin backed by US dollars and issued on the Cardano blockchain. It is backed by US dollars at a 1:1 ratio, held in an American bank, and can be purchased or redeemed for 1 US dollar. The token complies with the standard formats of native Cardano tokens, featuring 6 decimal places for maximum compatibility and integration within the Cardano blockchain ecosystem.<br><br>Rliability is high
Staking verdict: Non-Comfortable
USDM 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 for this token. Any instrument that claims to be "staking" for USDT token is not legitimate, which is why it is impermissible to use. <br><br>However, we are not talking about other pledge or liquidity instruments that involves USDM. It will have a separate ruling.
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