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Velvet

Velvet (VELVET)

AI Assisted Shariah Verdict
Last Update: 8/3/2026
Doubtful

SUMMARY

The $VELVET token has genuine utility within a multi-chain DeFi ecosystem. However, the verdict is Doubtful due to the protocol's integration of perpetual futures and lending protocols, an unknown share of problematic revenue from these sources, and an unverified minting authority.

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Verdict by Activity

How you can hold and use VELVET

Buy & Hold

Doubtful

Holding the token is Doubtful because the protocol generates an unknown portion of its revenue from perpetual futures fees, and the core business integrates interest-bearing lending and derivatives.

veVELVET Staking & Drops

Optional
Halal

Users can actively lock tokens to receive inflation-funded emissions and launchpad token drops, which are permissible sources of yield.

Perpetual Futures Trading

Optional
Haram

The platform integrates perpetual futures trading, which typically involves interest-based funding rates.

Lending Protocol Integrations

Optional
Haram

Vault managers are explicitly allowed to connect with lending protocols to earn interest-based yield on portfolio assets.

Shariah Component Breakdown

Shariah Analysis

Infrastructure — where it runs

Passed

The asset operates on neutral, general-purpose networks including Ethereum, Base, Solana, and BNB Chain, which merely host applications.

Application — what it does

Caution

Velvet Capital provides a multi-chain trading terminal and vault infrastructure, but it explicitly integrates perpetual futures trading and allows vault managers to connect with lending protocols, introducing Riba exposure.

Asset — what you own

Passed

The token's primary utility is staking for veVELVET to receive fee discounts, AI access, and governance rights, alongside an opt-in yield funded by inflation emissions.

Property Status (Māl)

Caution

The token is a native protocol position with genuine lawful use and an ascertainable supply, but the minting authority is unknown, warranting caution regarding discretionary controls.

Revenue Purity

Caution

The protocol earns revenue from spot and perpetual futures trading fees, but the exact share of problematic revenue derived from perpetuals is unknown.

Legitimacy & Security

whitepaper

Passed

Official documentation and tokenomics are publicly available and verifiable.

social presence

Caution

Not covered by research.

project audits

Passed

The project has undergone multiple security audits by reputable firms (PeckShield, Softstack, Shellboxes) and maintains active bug bounty programs.

Team & Ecosystem

team background

Passed

The team's background is verifiable through public interviews, such as with Cointelegraph.

Detailed Shariah Report

Overview

Velvet Capital provides a multi-chain trading terminal and non-custodial infrastructure for creating and managing on-chain portfolios, assisted by an AI framework. Its native token, $VELVET, is a protocol position rather than a redemption claim, used primarily for staking to receive fee discounts, AI access, and governance rights.

Why This Verdict

To evaluate $VELVET, we apply a three-layer Shariah screen examining its infrastructure, the application it serves, and the asset itself. The token operates on neutral, general-purpose networks like Ethereum, Base, and Solana which merely host applications, passing the infrastructure layer. As an asset, $VELVET qualifies as recognized digital property (Mal) because it exists on-chain, has an ascertainable supply, is transferable via self-custody, and carries genuine lawful utility; however, caution is warranted as its minting authority remains unverified. Despite passing these baseline checks, simply buying and holding the $VELVET token is rated Doubtful. This is because the protocol generates an unknown portion of its revenue from perpetual futures trading fees, and its core business explicitly integrates interest-bearing lending and derivatives. Beyond holding, users can interact with specific opt-in mechanisms. Staking $VELVET for veVELVET to receive inflation-funded emissions and launchpad token drops is Halal, as these are permissible sources of yield. Conversely, engaging in the platform's perpetual futures trading or utilizing its lending protocol integrations to earn interest on portfolio assets are both Haram due to direct exposure to Riba.

Permissible Aspects

  • The underlying infrastructure relies on neutral networks like Ethereum, Base, and Solana which merely host applications.
  • The token has genuine utility, offering trading fee discounts, AI access, and future governance rights.
  • The protocol generates permissible revenue from classic spot trading fees (0.5%) and advanced spot trading fees (1%).
  • The opt-in veVELVET staking program provides yield funded by permissible inflation emissions and launchpad token drops.

Points of Caution

  • !The protocol integrates perpetual futures trading, which typically involves interest-based funding rates, and the exact share of revenue derived from these fees is unknown.
  • !Vault managers are explicitly allowed to connect with lending protocols to earn interest-based yield on portfolio assets.
  • !The minting authority for the $VELVET token is currently unknown, which introduces risks regarding discretionary controls over the token supply.
  • !It is undisclosed whether the project's treasury earns interest from conventional banks or DeFi lending protocols.

Purification Note

Because the exact percentage of the protocol's revenue derived from impermissible perpetual futures fees is unknown, a precise purification rate for holding the token cannot be calculated. Furthermore, a planned fee-sharing mechanism is not yet live, meaning this revenue does not currently flow directly to token holders. If a user opts into the Haram lending or perpetual futures features, any resulting interest or funding rate income must be entirely donated to charity.

BOTTOM LINE

While $VELVET offers genuine utility within a multi-chain DeFi ecosystem, its Shariah status is Doubtful due to the platform's deep integration with perpetual futures and interest-bearing lending protocols. The inability to determine the exact share of revenue coming from these impermissible sources makes it difficult for scrupulous investors to hold the asset with confidence. As always, 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 Velvet (VELVET), 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.