What Protocols Are Blacklisted

With the guidance of Goldsand's Shariah Committee, we have identified multiple application categories that are classified as impermissible from a Shariah perspective. Deployed Ethereum protocols that match these categories are blacklisted.

The impermissible application categories are listed below

1. Lending protocols

   Examples: Aave, Compound

2. CDP (collateralized Debt Positions)

   Example: Maker DAO

3. Leverage trading protocols

   Example: Gearbox

4. Lending-based yield optimizers

   Example: Pendle

5. Basis Trade Stablecoins

   Example: Ethena

6. Synthetics

   Example: Synthetix

7. Derivative Protocols

   These include options, perpetual contracts (Perps). Example: Opyn, dYdX v3

8. RWAs based on treasuries

   Example: Ondo Finance, Hashnote, Mountain

9. Governance token of impermissible protocols

   Example: MKR, Aave, Ondo

10. Insurance Protocols

    Example: Nexus Mutual

11. Majority of NFTs

    NFTs are blacklisted by default. Some NFT collections are whitelisted after a manual and strict review from the Shariah advisors.

12. Yield-bearing assets with impermissible yield

    Example: DAI, Ondo's USDY, Hashnote's USYC

13. Sanctioned Protocols and addresses

    Example: Tornado Cash

Filtering Scope

• Currently, Ethereum L1 applications with TVL exceeding $50M have been reviewed. Impermissible applications have been decided based on the Goldsand Shariah Criteria. Transactions related to these applications are filtered and don’t contribute to Goldsand staking income.

• Ethereum L1 applications with TVL < $50M are being reviewed and impermissible applications are continuously added to the blacklist. During this time, Goldsand will purify (by giving to charities) part of the staking income to account for these applications. The purification component is paid from the Goldsand staking fee and doesn't affect the users' staking yield.

• The percentage of the staking income to be purified is calculated by considering the ratio between the combined TVL of the unreviewed applications to the total TVL of applications on the Ethereum L1.