The CAP coin project (associated with the Cap Labs / cap-contracts protocol) is prohibited, and investing in it is not permissible. The Sharia and technical reasons are briefly explained below:
1. The nature of the project and its smart contracts
Explicit lending and borrowing activity (Credit & Lending Platform): The protocol is a decentralized credit and lending platform that connects lenders with borrowers and issues dollar-denominated loans backed by collateral.
Explicit usury (Lending with Interest): The protocol’s basic model is based on depositing stablecoins and generating stcUSD (a yield-bearing currency). This yield comes directly from lending interest and private credit yields; it is precisely the “stipulated increase on a loan” (debt-based usury and interest, categorically forbidden).
Restaking and Underwriting: The contracts include mechanisms for securitizing and insuring usurious loans in collaboration with lending platforms such as Aave, making the system’s core activity the circulation of debt through usury
The CAP token is the governance and management token for the usurious lending protocol ecosystem.
“Cooperate in righteousness and piety, but do not cooperate in sin and aggression.”
The currency is not Sharia-compliant because the protocol’s underlying operations and contracts involve explicit usury (lending and borrowing with interest). It is preferable to avoid it and seek projects with genuinely permissible operational or technological activities.