HALAL Screening Cryptocurrency
Is Ethena Halal?
Complete Shariah Compliance Screening of Ethena to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Ethena
ENA, or Enjin Coin, is a cryptocurrency designed specifically for the gaming community. It allows players to create, manage, and trade virtual goods across different games. Imagine being able to buy a cool sword in one game and then use it in another game or even sell it to someone else! ENA makes this possible by using blockchain technology, which ensures that all transactions are secure and transparent.
What makes ENA unique is its focus on interoperability in gaming. While many games have their own currencies and items that can’t be used elsewhere, ENA breaks down those barriers. It empowers gamers by giving them true ownership of their in-game assets, meaning they can trade or sell them freely. Plus, it’s backed by a strong community and a platform that supports game developers, making it a fun and innovative way to enhance the gaming experience!
Transparent and Credible Team
Ethena's CEO and founder is Guy Young, who has experience in traditional finance. The company is backed by investors such as Dragonfly, Wintermute, OKX Ventures and advisors with expertise in finance, technology, and blockchain. The team also includes a number of employees who are key stakeholders. There is a clear team structure with identified individuals and known investors.
Score: 85
Clear Use Case or Purpose
Ethena aims to provide a stable, scalable, and censorship-resistant digital currency, USDe, pegged to the US dollar. It uses a delta-neutral strategy to mitigate asset price volatility, backed by collateralised crypto assets and short derivative positions. The project also has an "Internet Bond" concept which combines yield from staked ETH and funding & basis spread from perpetual and futures' markets. There is a clearly defined purpose and use case for the project.
Score: 90
Absence of Fraudulent Behavior
Ethena has undergone multiple audits by reputable cybersecurity firms, including Zellic, Spearbit, Quantstamp, Pashov, Code4rena, and Chaos Labs. These audits found no critical or high-level vulnerabilities. A public bug bounty program with Immunefi is also in place. These measures suggest a commitment to security and reduce the risk of fraud.
Score: 90
Ethical Practices
Ethena has implemented robust security measures, including smart contract audits, bug bounty programs, and continuous monitoring for potential vulnerabilities. The project is transparent about its mechanisms, and the use of blockchain technology for a trustless and automated system aligns with ethical standards in the blockchain industry. Although there are scam alerts mimicking the genuine website, this is not a reflection of Ethena's professionalism.
Score: 80
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Ethena 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.
Ethena 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
Ethena 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 Ethena Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Ethena Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform