Kava Lend
Crypto Overview
Purpose and Utility
Kava Lend (formerly known as Hard Protocol) is a decentralized money market built on the Kava blockchain. The HARD token serves as a governance token for the Kava Lend protocol, allowing holders to participate in protocol decisions and earn rewards for participating in governance.
Business Model
The core functionality of Kava Lend revolves around lending and borrowing crypto assets, which generates interest for lenders. This interest-based lending model is fundamentally problematic from an Islamic finance perspective, as it involves riba (interest).
Real-World Adoption
The protocol has achieved significant adoption within the Kava ecosystem, with millions in total value locked (TVL) and active lending markets for various cryptocurrencies. However, the primary use case remains interest-based lending.
Platform Development
The development team maintains regular updates to the protocol, with ongoing improvements to the lending markets and governance mechanisms. The project demonstrates technical legitimacy and continued development effort.
Token Distribution
The token distribution includes allocations for the team, investors, and community, with vesting schedules in place. While the distribution model appears reasonable, the underlying business model remains problematic from a Shariah perspective.
Crypto Impact
To assign a comfort level investing in Kava Lend 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 Kava Lend.
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.