XCarnival
Crypto Overview
Overview
XCarnival is a DeFi protocol that aims to provide NFT-backed loans and operate as a decentralized lending platform. The XCV token is used for governance and protocol incentives.
Purpose and Utility
The primary stated purpose of XCV is to serve as a governance token for the XCarnival protocol, allowing holders to vote on protocol parameters and participate in decision-making. Additionally, the token is used to incentivize liquidity providers and protocol users.
Business Model Analysis
The core business model revolves around NFT-collateralized lending and borrowing, which operates on an interest-bearing basis. Users can deposit their NFTs as collateral to borrow other cryptocurrencies, while lenders earn interest from providing liquidity to the protocol.
Real-World Adoption
The protocol has seen limited adoption since its launch, with most activity centered around lending and borrowing operations. The platform experienced a significant security incident in June 2022 when it was exploited for approximately $3.8 million.
Development Activity
While the project maintains a presence on social media and provides regular updates, development activity appears to be moderate. The team has implemented security improvements following the 2022 exploit.
Crypto Impact
To assign a comfort level investing in XCarnival 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 XCarnival.
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.