Indigo Protocol

Halal Rating :
Comfortable
Last Price $2.03 Last updated:
Rank 1105
1D Change 5.51 %
Market Cap $10.45m
Circulating supply 5,144,893
Maximum supply None

Crypto Overview

Categories
  • Cardano Ecosystem

Project Overview

Indigo Protocol is a decentralized synthetic assets protocol built on the Cardano blockchain. It allows users to create and trade iAssets, which are synthetic versions of real-world assets like stocks, commodities, and other cryptocurrencies, all backed by Cardano's ADA cryptocurrency as collateral.

Intended Utility

The INDY token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters, upgrades, and treasury management. It also provides staking rewards to those who help secure the network.

Actual Utility Analysis

The protocol has demonstrated real-world adoption, with active trading of synthetic assets on their platform. The development team maintains regular updates and improvements to the protocol, as evidenced by their GitHub activity and technical documentation. The actual usage aligns well with the intended utility, showing consistency between promises and delivery.

Token Distribution and Founder Assessment

The token distribution shows a relatively balanced allocation: 40% to the DAO treasury, 30% to the team (with vesting periods), 20% to early contributors, and 10% to the community. The team's tokens are subject to a 3-year vesting schedule with a 1-year cliff, indicating a long-term commitment to the project.

Revenue Model

The protocol generates revenue through trading fees on synthetic assets and liquidation fees, which are distributed to INDY stakers and the treasury. This model avoids traditional interest-based mechanisms, instead relying on fee-based income which is compliant with Islamic principles.

Crypto Impact

To assign a comfort level investing in Indigo 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 Indigo 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”.

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.

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Justification for our Halal Rating