Ajna Protocol
Crypto Overview
Purpose and Utility
Ajna Protocol is a decentralized, non-custodial lending protocol that aims to create permissionless lending markets without relying on oracles or governance for adding new collateral types. The AJNA token is used for protocol governance and receives protocol revenue through a burn mechanism.
Business Model Assessment
The protocol's core function is lending and borrowing, which when done for profit is generally considered non-compliant with Shariah principles as it involves riba (interest). The protocol enables users to earn yields through lending activities, which is fundamentally an interest-bearing system.
Real-World Adoption
The protocol has seen meaningful adoption since its launch in 2023, with active lending markets and significant total value locked (TVL). The governance token is actively used for protocol decisions.
Platform Development
There is substantial ongoing development activity, with regular updates and improvements to the protocol. The team maintains active GitHub repositories and consistently releases new features.
Token Distribution
The token distribution appears relatively fair, with no pre-mine for the team or investors. All tokens were distributed through a Dutch auction mechanism. However, the primary use case remains centered around lending activities.
Crypto Impact
To assign a comfort level investing in Ajna Protocol from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Ajna Protocol.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
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