Levana Protocol
Crypto Overview
Overview
Levana Protocol is a decentralized derivatives protocol built on the Terra blockchain. The protocol aims to provide perpetual futures trading with up to 10x leverage, allowing users to take long or short positions on various crypto assets.
Purpose and Utility
The LVN token serves as a governance token for the Levana Protocol ecosystem and provides holders with fee-sharing from trading activities on the platform. Token holders can participate in protocol governance decisions and earn rewards from trading fees.
Business Model Analysis
The core business model revolves around facilitating leveraged trading and derivatives, which essentially constitutes a form of gambling as it creates zero-sum games where one trader's gain is another's loss. The protocol's primary function enables speculative trading with leverage, which goes beyond simple asset exchange.
Development and Adoption
While the protocol shows active development and a functioning platform, its primary use case remains leveraged trading and derivatives speculation. The project's technical implementation appears sound, but the fundamental purpose raises significant concerns from an Islamic finance perspective.
Crypto Impact
To assign a comfort level investing in Levana 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 Levana 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.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.