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Ducat Protocol

Ducat Protocol (DUCATPROTOCOL)

AI Assisted Shariah Verdict
Last Update: 8/4/2026
Haram

SUMMARY

The Ducat Protocol points campaign is Doubtful. While the underlying project is a decentralized stablecoin platform, the reward token is not yet issued, making its utility and property status provisional. Furthermore, several core tasks involve impermissible lending and borrowing with origination fees. Although research indicates a halal path exists, users must strictly avoid the lending, borrowing, and liquidation tasks, participating only in the neutral social and referral quests if they allow qualification.

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Verdict by Activity

How you can hold and use DUCATPROTOCOL

Buy & Hold

Haram

The reward token is not yet issued (tge_pending), so its utility and property status are provisional and cannot be fully verified.

Connect Bitcoin Wallet

Halal

Connecting a wallet is a neutral, permissible on-chain action.

Deposit BTC Collateral

Haram

Depositing collateral into a lending protocol is impermissible; avoid this task.

Borrow UNIT Stablecoin

Haram

Borrowing with an origination fee constitutes an impermissible lending arrangement.

Repay UNIT

Optional
Haram

This is part of the impermissible lending cycle and should be avoided.

Participate in Liquidations

Optional
Haram

Purchasing discounted collateral from undercollateralized vaults is tied to impermissible lending mechanics.

Complete Social Missions

Optional
Halal

Following and engaging on social media is a permissible activity.

Invite Friends

Optional
Doubtful

Referrals are generally permissible, but the bonus requires the referee to engage in the impermissible lending protocol.

Hold NFTs or Discord Roles

Optional
Halal

Holding eligible NFTs or roles for point boosts is a neutral activity.

Mainnet Alpha Galxe Quest

Optional
Halal

Completing standard off-chain and on-chain social quests is permissible.

Shariah Component Breakdown

Shariah Analysis

Infrastructure — where it runs

Passed

The protocol operates entirely on the Bitcoin L1 blockchain using standard transactions and non-custodial Taproot vaults, which is a neutral and permissible infrastructure.

Application — what it does

Passed

The project operates a decentralized stablecoin and collateralized lending protocol natively on Bitcoin. Research confirms haram industry exposure is absent from its core operations.

Asset — what you own

Caution

The reward token is currently in the 'tge_pending' stage, meaning its utility and permissibility to hold cannot be fully evaluated until issuance.

Property Status (Māl)

Caution

The token is not yet issued (tge_pending), so its supply, utility, and transferability cannot be ascertained. The ruling is provisional until issuance.

Revenue Purity

Caution

The campaign requires tasks involving lending and borrowing (depositing collateral, borrowing stablecoins with an origination fee), which are impermissible. However, research indicates a halal path exists, so users may be able to qualify using only permissible tasks.

Legitimacy & Security

project audits

Passed

Audit and security information was found, and the protocol utilizes non-custodial 2-of-2 Taproot vaults.

social presence

Passed

The project maintains an active social presence with campaigns on X, Discord, Telegram, and Galxe.

whitepaper

Passed

Official website, documentation, and tokenomics were found and confirmed by research.

Team & Ecosystem

team background

Caution

The project is backed by notable investors such as UTXO Management, Hivemind Capital, and CMS Holdings, though specific core team members are not detailed in the notes.

Detailed Shariah Report

Overview

Ducat Protocol is a decentralized stablecoin and collateralized lending platform built natively on the Bitcoin blockchain using non-custodial Taproot vaults. The project is currently running a points campaign where users complete various on-chain and off-chain tasks to earn "Quanta" points, which are expected to convert into a future airdropped token.

Why This Verdict

The Shariah compliance of this airdrop is evaluated across three layers: the underlying infrastructure, the application's core business, and the asset itself. The infrastructure (Bitcoin L1) and the core business (decentralized stablecoin platform) are neutral and permissible. However, simply holding or claiming the reward token is currently rated Haram because the token has not yet been issued (TGE pending). In Islamic finance, a digital asset must presently exist, be ascertainable, and be transferable to qualify as recognized property (Mal); since this token is provisional, its property status and utility cannot be fully verified. Regarding the campaign tasks, users must navigate them carefully. Connecting a Bitcoin wallet, completing social missions, and holding eligible NFTs are Halal, opt-in activities. Conversely, depositing BTC collateral, borrowing the UNIT stablecoin (which charges a 1% origination fee), repaying UNIT, and participating in liquidations are Haram, as they constitute impermissible lending and borrowing arrangements. The referral program is Doubtful because earning the bonus requires the invited friend to engage in the impermissible lending protocol.

Permissible Aspects

  • The underlying infrastructure operates on the Bitcoin L1 blockchain using non-custodial Taproot vaults, which is a neutral and permissible technology.
  • Connecting a compatible Bitcoin wallet (like Unisat or Xverse) is a permissible on-chain action.
  • Engaging in off-chain social missions, such as following the project on X, joining Discord, and completing Galxe quests, are Halal activities.
  • Holding eligible NFTs or Discord roles for point boosts does not violate Shariah principles.

Points of Caution

  • !The reward token is not yet issued, meaning its final utility, supply, and transferability remain unknown, rendering its current property status provisional.
  • !Core campaign tasks require users to deposit BTC collateral and borrow UNIT stablecoins with a 1% origination fee, which constitutes an impermissible lending contract (riba).
  • !Participating in the liquidation market involves purchasing discounted collateral from undercollateralized vaults, which is directly tied to the impermissible lending mechanics.
  • !The referral program is problematic because the bonus is contingent on the referee depositing at least $500 USD of BTC into the lending protocol.

Purification Note

Not applicable. Since the token is not yet issued and the impermissible lending tasks involve paying fees rather than earning passive interest, there is no specific impure income for a holder to purify at this stage. Users must simply avoid the impermissible lending, borrowing, and liquidation tasks entirely.

BOTTOM LINE

The Ducat Protocol points campaign is Doubtful overall because the reward token does not yet exist and several core tasks require engaging in impermissible lending and borrowing. While a halal path exists by strictly limiting participation to neutral social and wallet-connection tasks, users must completely avoid depositing collateral, borrowing UNIT stablecoins, and participating in liquidations. Final religious authority rests with a qualified scholar.

How this verdict was reached

This is not an opinion issued by ShariaQuant. It is the output of a documented screening methodology applied to researched facts about Ducat Protocol (DUCATPROTOCOL), and every row above states the specific evidence that drove it — so the reasoning can be examined rather than taken on trust.

The framework screens three layers — the infrastructure an asset runs on, the application it serves, and the asset itself — and separately tests whether the token qualifies as recognised property (māl): that it presently exists, has an ascertainable supply, can be held and transferred, and carries a genuine lawful use. A failure at any single layer fails the asset.

Revenue-purity thresholds follow the AAOIFI screening standard: non-compliant income below 5% of revenue is tolerated and purified, while 5% or above fails the screen.

AAOIFI has not reviewed, approved or endorsed this report or ShariaQuant, and no scholar named in our methodology has reviewed this individual verdict. This is analysis, not a fatwa — final religious authority rests with a qualified scholar.