Nexo protocol allows users to borrow and lend money instantly. However, the same practices of the conventional financial systems are applied in this protocol. Collateral is needed to make a loan on this platform and users need to pay interest for that. Its token itself, NEXO, allows holders to receive discounts on their interests. We classified this utility token as non-Shariah compliant as its protocol and token are clearly built based on riba' system.
| 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 | Conventional lending and borrowing system are the basis on this platform which contain riba' or usury that contradicts with Shariah ruling. | Failed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | The token's utility is to be a medium of the reward system in the form of giving and earning usury. | Failed |
| Staking Method | No staking | Passed |
Read the source document and verify project fundamentals.