ZeroLend
Crypto Overview
Overview
ZeroLend is a decentralized lending protocol built on the Avalanche blockchain. The ZERO token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and updates.
Purpose and Utility
The primary purpose of ZERO is to serve as a governance token for the ZeroLend protocol, enabling decentralized control over the lending platform. Token holders can vote on protocol upgrades, risk parameters, and other governance decisions.
Business Model
The protocol operates as a lending platform where users can lend and borrow digital assets. The platform generates revenue through borrowing fees and liquidation penalties. This model involves interest-bearing activities which are typically considered non-compliant with Islamic finance principles when not done as an act of charity.
Development and Adoption
ZeroLend has shown active development with regular updates to the protocol. The platform has achieved notable adoption within the Avalanche ecosystem, with significant total value locked (TVL) in the protocol.
Token Distribution
The token distribution includes allocations for the team, early investors, and community incentives. While specific vesting schedules are in place, the primary concern from a Sharia compliance perspective is the protocol's core function of interest-based lending.
Crypto Impact
To assign a comfort level investing in ZeroLend 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 ZeroLend.
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.