Notional Finance
Crypto Overview
Purpose and Utility
Notional Finance is a DeFi protocol that enables fixed-rate lending and borrowing of cryptocurrencies. The NOTE token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and upgrades. Token holders can also stake NOTE to earn a share of protocol fees.
Business Model Analysis
The core business model revolves around facilitating lending and borrowing services, which inherently involves interest-based transactions. While the protocol provides genuine utility in the DeFi space, its fundamental operations are based on lending for profit, which is not aligned with Islamic financial principles.
Real-World Adoption
Notional has achieved significant adoption within the DeFi ecosystem, with hundreds of millions in total value locked (TVL) across its lending markets. The protocol has demonstrated consistent usage and maintains active development.
Platform Development
The project maintains active development with regular updates to its protocol and user interface. The team consistently implements governance proposals and technical improvements, indicating genuine effort to build and maintain the platform.
Token Distribution
NOTE tokens are distributed across protocol users, team members, and investors. The token distribution includes vesting schedules for team and investor allocations, demonstrating some commitment to long-term development.
Crypto Impact
To assign a comfort level investing in Notional Finance 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 Notional Finance.
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.