Venus LINK
Crypto Overview
Overview
Venus LINK (vLINK) is a token representing Chainlink (LINK) deposits in the Venus Protocol on the BNB Chain (formerly Binance Smart Chain). Venus Protocol is a decentralized money market protocol that enables users to supply digital assets and earn interest or borrow other assets against their collateral.
Purpose and Utility
The primary purpose of vLINK is to serve as a receipt token for LINK deposits in the Venus Protocol. When users deposit LINK into Venus, they receive vLINK tokens representing their deposit. These tokens can be used as collateral for borrowing other assets within the Venus ecosystem.
Business Model Assessment
The core business model involves lending and borrowing digital assets, which typically involves interest-based transactions. The protocol generates revenue through interest paid by borrowers, which is then distributed to lenders. This model fundamentally relies on interest-based lending, which is a form of riba.
Platform Activity and Development
Venus Protocol maintains active development and has significant usage on the BNB Chain. The protocol has implemented various security measures and undergone multiple audits. However, the fundamental nature of its operations remains centered around interest-based lending.
Token Distribution and Governance
vLINK tokens are minted when users deposit LINK and burned when they withdraw. The token distribution is directly tied to user deposits, making it transparent and predictable. However, the token's primary utility remains within an interest-based lending system.
Crypto Impact
To assign a comfort level investing in Venus LINK 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 Venus LINK.
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.