Is this crypto halal? Shariah screening report
Dai
DAI
- Price
- $0.998861
- Market cap
- $4.60B
- Circulating supply
- 4,607,133,364.617
- 24h change
- -0.08%
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
Dai is a decentralized stablecoin created by MakerDAO that aims to maintain a stable value of $1 USD through a complex system of smart contracts and collateralization. Unlike centralized stablecoins, Dai is backed by other cryptocurrencies locked in smart contracts rather than traditional fiat currency reserves.
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
Dai is a decentralized stablecoin created by MakerDAO that aims to maintain a stable value of $1 USD through a complex system of smart contracts and collateralization. Unlike centralized stablecoins, Dai is backed by other cryptocurrencies locked in smart contracts rather than traditional fiat currency reserves.
Current Usage
Dai has achieved significant adoption within the DeFi ecosystem, with billions in circulation and widespread integration across decentralized exchanges, lending platforms, and payment systems. It serves as a critical piece of DeFi infrastructure.
Business Model
The system works by users depositing cryptocurrency collateral (primarily ETH and other approved tokens) into Maker Vaults to generate Dai. The protocol maintains price stability through automatic liquidations and dynamic stability fees. The primary use case is providing a stable medium of exchange and store of value in the crypto ecosystem.
Development Activity
MakerDAO maintains active development with regular protocol upgrades and improvements to the stability mechanisms. The project has a large community of developers and users. Key Concerns The primary concern from an Islamic finance perspective is that the protocol involves lending and borrowing mechanisms that function similarly to interest-based systems. While the technical implementation differs from traditional lending, the economic substance appears to mirror interest- bearing debt.
Rating Justification
UncomfortableWhile Dai's technology is innovative and the project demonstrates legitimate utility as a stable medium of exchange, its core mechanisms involve lending and borrowing that mirror interest-based systems. The protocol effectively allows users to take out loans against collateral while paying fees that function similarly to interest. Though some argue that the technical implementation differentiates it from traditional interest-bearing debt, we take a more conservative view based on the economic substance of the transactions. The lending/borrowing aspects of the protocol, which are fundamental to its operation rather than incidental, make it difficult to classify as fully Shariah-compliant.
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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.
- corpus