HALAL Screening Cryptocurrency
Is Uniswap Halal?
Complete Shariah Compliance Screening of Uniswap to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Uniswap
UNI is the native cryptocurrency of Uniswap, which is a popular decentralized exchange for trading various cryptocurrencies. Think of it like a digital marketplace where you can swap one type of crypto for another without needing a middleman, like a bank. Uniswap uses smart contracts—self-executing contracts with the terms directly written into code—to facilitate these trades automatically, making it super efficient and accessible for anyone with an internet connection.
What makes UNI unique is that it not only allows you to trade cryptocurrencies but also gives you a say in how the platform operates. As a UNI holder, you can participate in governance decisions, like proposing changes or voting on new features. This community-driven approach means that users have a direct influence on the future of Uniswap, making it feel more like a cooperative than a traditional business. Plus, it’s one of the first platforms to popularize automated market-making, which has inspired many other projects in the crypto space!
Transparent and Credible Team
The report identifies Hayden Adams as the founder and CEO of Uniswap Labs, detailing his experience. This indicates a transparent team with a credible history. Score: 80
Clear Use Case or Purpose
Uniswap's purpose is to provide a decentralised platform for token swaps, with a focus on peer-to-peer exchanges and automated liquidity. This demonstrates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The report mentions multiple third-party audits by ConsenSys and ChainSecurity, aiming to ensure the security and reliability of the platform. While vulnerabilities have been identified, they were addressed, and the platform is committed to security. The platform also publishes transactions. Score: 85
Ethical Practices
Uniswap prioritises decentralisation and censorship resistance. The platform engages with regulatory bodies and has implemented KYC verification. However, there are concerns regarding the prevalence of scam tokens on the platform, and the SEC is investigating potential illegal offerings. Score: 70
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Uniswap Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
Uniswap Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
Uniswap Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking Uniswap Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Uniswap Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform