Qredo's Version 2.0 protocol emphasizes a decentralized method for the custody, delivery, and settlement of digital assets. This approach enables secure transfer, lending, or atomic swaps of assets among different parties through Qredo's decentralized settlement network. To facilitate lending activities, Qredo intends to adopt the interest rate mechanism recommended in Delphi Digital's report. However, charging interest to borrowers in lending activities goes against Shariah law due to the presence of Riba, making it non-compliant.
| Category | Details | Status |
|---|---|---|
| Legitimacy | Not regulated by any countries or regulatory bodies. The project has a clear roadmap and genuine product on blockchain, while the token/coin has a fundamental underlying value that allows it to be categorized as "Mal". | Passed |
| Project | The Version 2.0 protocol of Qredo reinforces its decentralized approach to custody, delivery, and settlement of crypto assets, which allows for secure transfer, lending, or atomically swapping of assets between parties through Qredo's decentralized settlement network. According to Delphi Digital's report, the use of a PID controller with a Ziegler-Nichols method to tune parameters is a more accurate and fair mechanism for setting interest rates compared to other methods. Qredo plans to implement this mechanism for interest rate setting. However, charging interest in lending activities to borrowers is prohibited in Islam due to the presence of Riba, making it a Shariah non-compliant activity. | Failed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | The QRDO token is a valuable asset that provides both utility and governance to the Qredo Network. QRDO holders have the option to stake their tokens with validators, allowing them to earn staking yield. One of Qredo's unique features is that unvested QRDO is automatically staked and accrues yield. QRDO holders can also use their staked tokens deposited with a Validator as margin. However, if a trader uses their staked QRDO tokens as collateral to access a Qredo Loan Pool, a different fee schedule is necessary to compensate the Validator. This is because the Validator is essentially loaning the customer's staked assets back to them to use as collateral. Dr. Wahbah Al-Zuhailiy has highlighted eight conditions for the object of a pawning contract which are eligibility for sale, being a property, being valued, being known, being owned, not being attached, being seperate and being clearly identified. There is uncertainty regarding whether using staked tokens as collateral fulfills all eight conditions for a pawning contract, as outlined by Dr. Wahbah Al-Zuhailiy. | Grey |
| Staking Method | Qredo's protocol implements a Delegated Proof-of-Stake (DPOS) based blockchain system, whereby holders of the QRDO token can add their balance to a Validator's balance in exchange for a share of the rewards the Validator receives for performing its role. The Validator is compensated for achieving consensus during the generation, voting for, and validation of new blocks | Passed |
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