Strike
Crypto Overview
Intended Utility
Strike Protocol is the governance token for the Strike Money Market Protocol, built on Ethereum. It enables users to participate in decentralized lending markets. The protocol allows users to deposit assets as collateral and borrow other assets against that collateral.
Business Model & Current Usage
The primary utility of STRK tokens is governance rights over the Strike protocol. Token holders can propose and vote on changes to the protocol parameters, risk frameworks, and treasury management. The protocol generates revenue through borrowing fees and liquidation penalties.
Real World Adoption
Strike has achieved moderate adoption within the DeFi ecosystem, though significantly less than leading competitors like Aave and Compound. The protocol has maintained active development and community engagement since its launch.
Token Distribution
The token distribution appears relatively balanced with: 30% allocated to the community treasury, 25% to the team and advisors (with vesting), 20% for community incentives, 15% for early supporters, and 10% for future development. Vesting schedules are in place for team allocations, showing some commitment to long-term development.
Technology Assessment
The core technology revolves around lending and borrowing, which inherently involves interest-bearing mechanisms. While the protocol has implemented various risk management features and maintains transparent operations, its fundamental mechanism involves riba (interest).
Crypto Impact
To assign a comfort level investing in Strike 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 Strike.
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.