Loopring essentially provides developers with a Decentralized Exchange (DEX) modular protocol for DApps building on top of the Ethereum blockchain, while having their own DEX in the platform. Loopring relies on a proof-of-work (PoW) algorithm to verify and generate new blocks on the network. Miners get rewards in the form of Loopring tokens. However, we conclude this to be non-Shariah compliant as it has the farming protocol in the platform.
| Category | Details | Status |
|---|---|---|
| Legitimacy | Not regulated by any countries or regulatory bodies. Loopring has a well-defined path; an experienced founder with a foundation team keeping the program up to date since 2017, makes it a legitimate and trusted platform. The token/coin has a fundamental underlying value that qualifies it as a "Mal" or asset. | Passed |
| Project | Loopring is a layer 2 scaling solution that provides Decentralized Exchange (DEX) modular protocol that allows developers to build DApps on the Ethereum blockchain. It implements the ZK-rollups system to optimize the scalability of the mainchain. However, there is the existence of a farming protocol feature in the platform which considered as non-Shariah compliant. | Failed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | The native currency of the Loopring is LRC, which is a utility and governance token in the network. It is also used to facilitate the operations of the framework and may be acquired as staking incentives from network participation. | Passed |
| Staking Method | The methods involve staking methods to ensure the safety and protection of the DEX, and staking to earn rewards from the protocol fees. | Passed |
Read the source document and verify project fundamentals.