HALAL Screening Cryptocurrency
Is Synthetix Network Halal?
Complete Shariah Compliance Screening of Synthetix Network to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Synthetix Network
SNX, or Synthetix, is a cryptocurrency that allows people to trade synthetic assets, which are digital representations of real-world assets like currencies, commodities, and stocks. Think of it as a way to invest in things like gold or the US dollar without actually owning them. Instead of buying the physical asset, you can use SNX to create and trade these synthetic versions on the Synthetix platform. This opens up a whole new world of trading opportunities, making it easier for anyone to access various markets.
What makes SNX unique is its decentralized nature and the way it uses a system of collateralization. When you hold SNX, you can lock it up as collateral to mint synthetic assets. This means that the value of the synthetic assets is backed by the SNX you hold, creating a secure and transparent trading environment. Plus, because it's built on blockchain technology, transactions are fast and don’t require a middleman, which can save you time and money. So, it’s like having a supercharged trading platform right at your fingertips!
Transparent and Credible Team
Our research details the background of founder Kain Warwick and other key team members. This suggests a transparent team with relevant experience, so a high score is warranted.
Score: 85
Clear Use Case or Purpose
Synthetix's purpose as a platform for creating and trading synthetic assets is clearly articulated in the documentation. The platform offers a range of use cases, such as derivatives trading and multi-collateral perps, which demonstrates a clear and legitimate use case.
Score: 90
Absence of Fraudulent Behavior
The project has undergone audits by firms such as iosiro and EtherAuthority. These audits aim to ensure the security and reliability of the platform's smart contracts, suggesting an absence of fraudulent behaviour.
Score: 85
Ethical Practices
Synthetix emphasises community-led governance through DAOs. The platform also has a transparent approach through documentation and third party audits. However, there are issues regarding a lack of clarity in governance models and long-term vision.
Score: 70
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Synthetix Network 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.
Synthetix Network 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
Synthetix Network 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 Synthetix Network Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Synthetix Network Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform