Stater

Overview

Stater is a decentralized platform that aims to facilitate NFT-backed loans. The STR token is the native token of the Stater platform, used for governance and platform operations.

Purpose Analysis

The stated purpose of Stater is to enable users to use their NFTs as collateral for loans, with STR token holders participating in governance decisions. However, this primary use case involves lending for profit, which is not aligned with Islamic principles unless done purely as an act of charity.

Business Model Evaluation

The core business model revolves around facilitating lending and borrowing using NFTs as collateral, with lenders earning interest on their loans. This model inherently involves riba (interest-based lending), which is not permissible in Islamic finance.

Platform Development and Adoption

The platform shows ongoing development activity and has established partnerships within the NFT lending space. While the technical implementation appears sound, the fundamental business model remains problematic from a Shariah perspective.

Token Distribution and Governance

The STR token is used for governance of the protocol and provides voting rights to holders. However, since these governance rights primarily relate to managing an interest-based lending system, the token's utility is intrinsically tied to non-Shariah compliant activities.