Tidal Finance
Crypto Overview
Purpose and Utility
Tidal Finance aims to provide insurance and derivative products for DeFi protocols. The platform is designed to allow users to create insurance pools and purchase coverage against smart contract failures and other DeFi risks. TIDAL tokens are used for governance and staking within the ecosystem.
Business Model Analysis
The core business model revolves around insurance and financial derivatives in the DeFi space. Insurance itself is permissible in Islam as it involves risk-sharing rather than interest-based transactions. However, some of Tidal's derivative products may involve elements of leveraged trading and interest-bearing mechanics that raise concerns.
Real-World Adoption
The project has shown limited adoption since its launch. While some insurance pools have been created, the platform's usage remains relatively modest compared to other DeFi insurance protocols.
Development Activity
Development activity appears to be ongoing, though at a moderate pace. The team maintains the platform and has implemented various updates to improve functionality and security.
Token Distribution
The token distribution includes allocations for the team, advisors, and early investors, with vesting periods in place. The specific percentages and vesting schedules are publicly available in their documentation.
Crypto Impact
To assign a comfort level investing in Tidal 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 Tidal 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.