Loop Network
Crypto Overview
Project Overview
Loop Network is a DAO-governed protocol built on the Ethereum blockchain that aims to provide decentralized perpetual futures trading. The LOOP token serves as both a governance token and a means to earn protocol revenue through staking.
Purpose and Utility
The primary stated purpose of LOOP is to serve as a governance token for the Loop Network protocol, allowing holders to vote on protocol decisions and earn a share of trading fees when staked. The token is currently being used as intended for governance and fee sharing.
Business Model Analysis
The core business model revolves around perpetual futures trading and lending, which are activities that generally involve interest (riba) and gambling-like zero-sum trading. The protocol generates revenue through trading fees and liquidation fees.
Development and Adoption
The project shows active development on GitHub and has a growing user base engaging with the perpetual futures trading platform. The team regularly provides updates and has implemented several protocol improvements.
Token Distribution
According to publicly available data, a significant portion of LOOP tokens are allocated to the founding team and early investors, with appropriate vesting schedules in place to prevent immediate selling.
Crypto Impact
To assign a comfort level investing in Loop Network 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 Loop Network.
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.