Euler
Crypto Overview
Project Overview
Euler Finance is a lending protocol built on Ethereum that offers unique features like permissionless asset listing and protected collateral. The EUL token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and upgrades.
Purpose and Utility
The EUL token's primary utility is governance of the Euler protocol. Token holders can propose and vote on changes to the protocol, including risk parameters, fee structures, and protocol upgrades. Additionally, the token has a built-in incentive mechanism where holders can stake their tokens to earn protocol revenue.
Business Model Analysis
The core business model revolves around decentralized lending services, which generally falls under interest-based lending (riba) and is a concern from an Islamic finance perspective. The governance utility itself would be permissible, but it's inseparable from the lending activities.
Real-World Adoption
The protocol has significant adoption within DeFi, with hundreds of millions in historical total value locked (TVL). However, this adoption is primarily centered around lending and borrowing activities.
Development Activity
The project maintains active development with regular updates and improvements to the protocol. The team has demonstrated commitment to security and protocol stability, particularly following a significant exploit in March 2023 which was later resolved with full user reimbursement.
Crypto Impact
To assign a comfort level investing in Euler 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 Euler.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.