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UNIT STABLECOIN

UNIT STABLECOIN (UNITSTABLECOIN)

AI Assisted Shariah Verdict
Last Update: 8/6/2026
Haram

SUMMARY

The UNIT stablecoin is deemed non-compliant because the underlying Ducat Protocol's core business involves minting stablecoins against collateral while charging a percentage-based origination fee, which constitutes Riba. Consequently, the protocol's revenue is predominantly derived from impermissible sources.

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Verdict by Activity

How you can hold and use UNITSTABLECOIN

Buy & Hold

Haram

The protocol's core business involves interest-based lending mechanics (percentage-based origination fees) and its revenue is predominantly derived from these impermissible sources.

Shariah Component Breakdown

Shariah Analysis

Infrastructure — where it runs

Passed

The protocol operates natively on Bitcoin (L1), which is a neutral, general-purpose network.

Application — what it does

Failed

The protocol's core business involves lending and minting stablecoins against collateral, charging a 1% origination fee that scales as a percentage of the amount advanced, which constitutes Riba. Furthermore, liquidation terms involve a tax and discount where it is unknown if the surplus is returned to the borrower.

Asset — what you own

Passed

The token's primary utility is as a stable medium of exchange and store of value, with no native yield mechanisms.

Property Status (Māl)

Passed

The token exists on-chain with ascertainable supply, genuine lawful use as a stablecoin, and self-custodial control without discretionary freeze authority. As a debt-claim token, the holder owns a redemption claim against the protocol rather than a native protocol position, and its value depends on the protocol's ability and willingness to honour it.

Revenue Purity

Failed

Over 33% of the protocol's revenue is derived from Shariah-problematic sources, specifically the percentage-based origination fees on loans and liquidation taxes.

Legitimacy & Security

whitepaper

Passed

The project provides comprehensive documentation and tokenomics detailing the collateral ratios and protocol mechanics.

project audits

Caution

While security information is present, the notes do not evidence a completed independent audit by a named auditor for this novel technology.

social presence

Caution

Not covered by research.

Team & Ecosystem

team background

Caution

Not covered by research.

Detailed Shariah Report

Overview

The UNIT stablecoin is a Bitcoin-native digital asset issued by the Ducat Protocol, designed to maintain a peg to the US dollar for use in liquidity, trading, and spending. Users mint UNIT by posting Bitcoin as collateral, effectively taking out a loan against their holdings. As a debt-claim token, holding UNIT means the user owns a redemption claim against the protocol rather than a native protocol position, meaning its value depends entirely on the protocol's ability and willingness to honor it.

Why This Verdict

The verdict on buying and holding the UNIT stablecoin is Haram. We evaluate digital assets across a three-layer screen: the underlying infrastructure, the application it serves, and the asset itself. A failure at any single layer fails the entire asset. At the infrastructure layer, UNIT passes because it operates natively on Bitcoin (L1), which is a neutral, general-purpose network; hosting other applications does not taint the native environment. At the asset qualification layer, UNIT passes as recognized digital property (Mal). A digital asset becomes property when it is an exclusive, protocol-recognized right of control that presently exists on-chain, has an ascertainable supply, is transferable, and carries a genuine lawful use. However, UNIT fails at the application layer. The Ducat Protocol's core business involves minting stablecoins against collateral while charging a 1% origination fee. Because this fee scales as a percentage of the loan amount advanced, it is a charge for receiving credit, which constitutes Riba (interest). Consequently, over 33% of the protocol's revenue is derived from these impermissible lending mechanics, making the token non-compliant.

Permissible Aspects

  • The token operates on Bitcoin (L1), a neutral and general-purpose infrastructure layer.
  • The token itself possesses genuine lawful utility as a stable medium of exchange and store of value.
  • The protocol does not operate any gambling mechanisms (Maisir) or supply bespoke inputs to haram industries.
  • Holding the UNIT token does not natively generate interest or passive yield for the user.

Points of Caution

  • !The protocol's core business relies on interest-based lending mechanics, specifically a 1% origination fee that scales as a percentage of the borrowed amount, which constitutes Riba.
  • !During liquidations, the protocol extracts a variable tax from the user's collateral, and documentation does not clarify if any surplus is returned to the borrower.
  • !UNIT is a debt-claim token, meaning holders rely on the issuer's solvency and willingness to honor redemptions, rather than holding a trustless native asset.
  • !The project lacks evidence of a completed independent security audit by a named auditor, and team background information is not publicly available.
  • !It is unknown whether the protocol's treasury earns interest from conventional banks or DeFi lending platforms.

Purification Note

Not applicable. Because the asset's core underlying protocol is fundamentally driven by Riba-based lending and the token is deemed Haram to hold, purification cannot make the investment permissible. Investors should avoid the asset entirely.

BOTTOM LINE

The UNIT stablecoin is deemed non-compliant with Shariah principles because its issuing protocol generates its primary revenue through percentage-based origination fees on collateralized loans, which constitutes Riba. While the token itself functions as a standard stablecoin on a neutral network, the impermissible nature of the protocol's core lending business renders it Haram for Muslim investors. Please note that this is an analytical report, and final religious authority rests with a qualified Shariah 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 UNIT STABLECOIN (UNITSTABLECOIN), 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.