Unit Protocol Duck
Crypto Overview
Overview
Unit Protocol Duck (DUCK) is the governance token for the Unit Protocol, a decentralized borrowing platform built on Ethereum. The protocol allows users to mint USDP stablecoins using various cryptocurrency collateral types.
Purpose and Utility
The DUCK token serves as a governance mechanism for the Unit Protocol, allowing holders to vote on protocol parameters and changes. Token holders can participate in decision-making regarding collateral types, liquidation parameters, and other protocol features.
Business Model Analysis
The core business model involves decentralized lending and borrowing, which raises concerns from an Islamic finance perspective since it generates profit from lending. The protocol charges fees for borrowing USDP against collateral, which essentially functions as interest-based lending.
Platform Activity and Development
The project maintains active development on GitHub, with regular updates to the protocol. However, the primary utility remains centered around lending and borrowing activities.
Token Distribution and Governance
The token distribution includes allocations for team members, early investors, and the community. While the governance structure is transparent, the underlying protocol's primary function of interest-based lending is problematic from a Shariah perspective.
Crypto Impact
To assign a comfort level investing in Unit Protocol Duck 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 Unit Protocol Duck.
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.