Anchor is a savings protocol on the Terra blockchain that facilitates depositing and borrowing Terra stablecoins. Anchor Protocol involves lending and borrowing activity which contra with Shariah rulings.
| Category | Details | Status |
|---|---|---|
| Legitimacy | Not regulated by any countries or regulatory bodies. The project has a clear roadmap and genuine product on the blockchain, while the token/coin has a fundamental underlying value that allows it to be categorized as "Mal" | Passed |
| Project | Anchor is a saving protocol that enables depositing and borrowing of Terra stablecoins. Anchor Network involves lending and borrowing activities that contain usury in the reward system, which contradicts Shariahâs rulings. | Failed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | ANC is a governance token that distributes protocol fees to ANC stakers, incentives to bootstrap borrow demand, and initial deposit rate stability. One of the utilities used to incentivize based on usury reward. | Failed |
| Staking Method | Contributing to staking will earn staking rewards from transaction fees. The reward system is permissible as it does not contain Riba, Gharar, or Maisir. | Passed |
Read the source document and verify project fundamentals.