Maker (MKR) - Disputed Among Scholars
Maker (MKR) is classified as "Disputed Among Scholars" based on scholarly analysis of its underlying technology, use case, and compliance with Islamic financial principles.
Shariah Assessment
Maker governs the DAI stablecoin system through collateralized debt positions (CDPs). The protocol charges 'stability fees' on borrowed DAI, which function similarly to interest. The system also invests collateral in US Treasuries, raising riba concerns.
MakerDAO's evolution to include real-world assets (RWAs) including US Treasuries has increased riba-related concerns.
Scholarly References
- ISRA (CDP stability fees raise riba concerns)
- Mufti Faraz Adam (collateralized lending in DeFi needs careful analysis)
Last reviewed: December 1, 2024
Frequently Asked Questions
Is Maker (MKR) halal to invest in?
According to scholarly analysis, Maker (MKR) is classified as "Disputed Among Scholars". Maker governs the DAI stablecoin system through collateralized debt positions (CDPs). The protocol charges 'stability fees' on borrowed DAI, which function similarly to interest. The system also invests collateral in US Treasuries, raising riba concerns.
What do scholars say about investing in Maker?
Key scholarly references include: ISRA (CDP stability fees raise riba concerns); Mufti Faraz Adam (collateralized lending in DeFi needs careful analysis). MakerDAO's evolution to include real-world assets (RWAs) including US Treasuries has increased riba-related concerns.
Is cryptocurrency investing halal in Islam?
Cryptocurrency investing is a topic of scholarly debate. Some scholars permit it as a form of digital property, while others express concerns about speculation (gharar). The permissibility often depends on the specific cryptocurrency's use case, backing, and whether it involves prohibited elements.
Do I need to pay Zakat on Maker?
If you hold Maker as an investment and your total holdings exceed the Nisab threshold, Zakat is generally due at 2.5% of the market value. Use Mizaan's Zakat calculator to compute your obligation based on your specific madhab.