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Is Dai (DAI) halal?

Questionable

No condition fails, but 4 points remain to be verified or fall under a tolerated case.

Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/05/2026 and not reviewed by a human.

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The asset

decentralized stablecoin (backed by collateral) Issuer: Sky protocol (formerly MakerDAO), with no single issuer; governed by holders of the SKY governance token.

A stablecoin pegged to the U.S. dollar, launched in 2017, created when borrowers deposit collateral in protocol “Vaults” and borrow Dai, which they repay with stability fees. About 4.60 billion Dai are in circulation on October 5, 2026 according to CoinGecko; Sky also offers USDS, an upgraded version convertible 1 for 1.

Why this verdict

  1. Permissible purpose : to be verified or tolerated case. Dai is used to hold and transfer dollars on Ethereum and other blockchains; no gambling or illicit-content purpose is found. But every Dai in circulation originates from a loan made to a borrower in exchange for stability fees, which ties the token's purpose to what it represents (see c2).
  2. No riba : to be verified or tolerated case. A plain Dai holder receives no yield, but the protocol collects stability fees from borrowers and the income of real-world assets, and its savings module (Dai Savings Rate) pays a governance-set rate to holders who deposit their tokens in it, presented as an incentive to hold Dai; the current rate was not recorded.
  3. No gambling : met. A spot purchase covers an ERC-20 token transferable between addresses (701,910 holding addresses on Ethereum), quoted at 0.9999 USD on October 5, 2026; it is not a bet on a price difference without purchase or delivery.
  4. No excessive gharar : to be verified or tolerated case. The issuance rules are published and the contract is immutable; but the numerical composition of the collateral (USDC in the stability module, loans through “agents”, real-world assets) could not be read, because the dashboard is loaded by script. S&P Global Ratings rated USDS and Dai 4 (“constrained”) as of December 8, 2025.
  5. Real ownership : met. Dai is held in a personal wallet; the contract code read on Etherscan contains no address-blocking function (no occurrence of “blacklist”) and Sky states that the contract is immutable. Part of the collateral is, however, USDC, whose issuer can block addresses (see the USDC profile).
  6. No fraud or manipulation : to be verified or tolerated case. No fraud against buyers and no regulator sanction was found. To be verified: stability score of 4 (“constrained”) and S&P credit rating of B-, a 2020 episode leaving more than $4.5 million of unbacked Dai, a 2022 study identifying a dominant voting coalition; the current concentration of SKY and MKR tokens was not recorded.

Contract security scan

GoPlus security scan of the DAI contract on Ethereum: 710,099 holders; top ten wallets excluding exchanges and contracts 2.1%; code published; token on GoPlus's trusted list. Signals found: Minting right: the supply can be increased by the contract owner (is_mintable). Reading: Issuance by the protocol (Sky governance): the minting right is the stablecoin's very mechanism, not a rug pull signal under rule A.8.

Opinions found during the research

Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.

What could not be verified

Sources read

Other cryptos analyzed

General information: neither investment advice nor a fatwa. Verdict calculated by published rules, from financial statements read automatically and not reviewed by a human. Read the methodology