Wrapped USDR
Crypto Overview
Overview
Wrapped USDR (WUSDR) is the wrapped version of USDR, a stablecoin project that aims to provide a Shariah-compliant digital currency. WUSDR exists on the Ethereum blockchain as an ERC-20 token, making the original USDR compatible with Ethereum's DeFi ecosystem.
Purpose and Utility
The primary purpose of WUSDR is to serve as a bridge between the USDR ecosystem and Ethereum-based applications while maintaining Shariah compliance. It allows holders to access Ethereum-based services while holding what is essentially USDR.
Business Model
The business model involves a 1:1 backing of WUSDR with USDR, similar to how WETH is backed by ETH. When users want to use their USDR on Ethereum, they can wrap it into WUSDR through a smart contract. This process is reversible, allowing users to unwrap their WUSDR back to USDR when needed.
Real-World Adoption
The adoption of WUSDR is currently limited, as it is a relatively new project. However, this does not affect its Shariah compliance status, as the underlying mechanism and purpose are legitimate.
Platform Development
The development activity primarily focuses on maintaining the wrapping/unwrapping mechanism and ensuring secure integration with the Ethereum network. The smart contracts have been audited to ensure security.
Crypto Impact
To assign a comfort level investing in Wrapped USDR 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 Wrapped USDR.
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.