Bunni
Crypto Overview
Project Overview
Bunni is a liquid staking derivative protocol built on Ethereum and Base that aims to provide composable liquid staking derivatives (LSDs) through a protocol-owned liquidity (POL) model.
Purpose and Utility
The main utility of the LIT token is governance over the Bunni protocol, allowing token holders to participate in decision-making regarding protocol parameters and upgrades. The token also captures value from protocol fees generated through the liquid staking operations.
Business Model Analysis
The protocol's business model centers around providing liquid staking services, allowing users to stake their ETH while receiving tradeable derivative tokens. The protocol earns fees from staking operations which flow to LIT token holders.
Development and Adoption
The project shows active development with regular updates to the protocol's smart contracts and infrastructure. The project is relatively new but has begun to gain traction in the DeFi ecosystem, particularly on Base.
Token Distribution
The token distribution includes allocations for the team, early investors, and community treasury. Standard vesting schedules are in place for team and investor allocations to ensure long-term alignment.
Technology Evaluation
The protocol's core functionality revolves around staking operations which involve interest-bearing mechanisms. While staking itself is permissible, the interest-bearing nature of the protocol raises some concerns from an Islamic finance perspective.
Crypto Impact
To assign a comfort level investing in Bunni 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 Bunni.
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.