Is this crypto halal? Shariah screening report
Euler
EUL
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Report generated 8/27/2026, 6:34:27 PM · stored corpus assessment · confidence 88%
Crypto Halal Report Criteria
We use a disciplined framework to determine if a digital asset is Comfortable from a sharia perspective, based on three core pillars.
Purpose & Real-World Value Flagged
The EUL token's primary utility is governance of the Euler protocol. Token holders can propose and vote on changes to the protocol, including risk parameters, fee structures, and protocol upgrades. Additionally, the token has a built-in incentive mechanism where holders can stake their tokens to earn protocol revenue.
Honesty & Founder Intent Clear
See token distribution section.
Dealing with Risk & Speculation Clear
Speculative trading of a real asset is treated as trade, not gambling, under the screening framework.
Crypto Overview
Purpose and Utility
The EUL token's primary utility is governance of the Euler protocol. Token holders can propose and vote on changes to the protocol, including risk parameters, fee structures, and protocol upgrades. Additionally, the token has a built-in incentive mechanism where holders can stake their tokens to earn protocol revenue.
Current Usage
The protocol has significant adoption within DeFi, with hundreds of millions in historical total value locked (TVL). However, this adoption is primarily centered around lending and borrowing activities.
Business Model
The core business model revolves around decentralized lending services, which generally falls under interest-based lending (riba) and is a concern from an Islamic finance perspective. The governance utility itself would be permissible, but it's inseparable from the lending activities.
Development Activity
The project maintains active development with regular updates and improvements to the protocol. The team has demonstrated commitment to security and protocol stability, particularly following a significant exploit in March 2023 which was later resolved with full user reimbursement.
Rating Justification
UncomfortableWhile the governance utility of the EUL token itself could be considered permissible, the token's fundamental connection to an interest-based lending protocol makes it problematic from an Islamic finance perspective. The core business model involves facilitating and profiting from lending activities that are not structured as charitable acts, which conflicts with Islamic principles regarding riba. The protocol's main utility and revenue model is based on interest-bearing loans, making it difficult to separate the token's governance utility from its involvement in non-Sharia compliant activities.
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Disclaimer: These reports are findings of AI analysis and cannot be guaranteed to be accurate. Ratings reflect opinions derived from automated criteria applied to the sources you submitted and a corpus of prior assessments. This is not a fatwa and does not determine Islamic law. Ratings may change as projects evolve. Always conduct your own research before investing.
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