zkLend
Crypto Overview
Project Overview
zkLend is a Layer 2 money market protocol built on zkSync that aims to provide decentralized lending services while reducing transaction costs through zero-knowledge proof technology. The ZEND token is designed to serve as a governance token for the zkLend protocol.
Intended Purpose and Current Usage
The ZEND token's primary intended purposes are: 1) Protocol governance - token holders can participate in decision-making regarding protocol parameters and upgrades, 2) Protocol incentivization - rewards for liquidity providers and other participants in the ecosystem.
Business Model Analysis
The core business model revolves around decentralized lending and borrowing services, which in their current form would be considered non-compliant with Sharia principles as they involve interest-bearing loans. While the governance utility itself is permissible, the underlying protocol activities primarily facilitate interest-based lending.
Development and Adoption
The project shows active development on its GitHub repositories and has established partnerships within the zkSync ecosystem. However, the primary utility of the token remains tied to a lending protocol that operates on interest-based principles.
Token Distribution and Governance
The token distribution includes allocations for the team, early investors, and community incentives. While the distribution model itself isn't problematic from a Sharia perspective, the token's primary utility in governing an interest-based lending platform raises concerns.
Crypto Impact
To assign a comfort level investing in zkLend 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 zkLend.
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.