Asalamu Alaikum wa Rahmatullahi wa Barakatuh
After greetings, I am very happy to have joined a website where Muslim people gather to discuss halal investments.
The question is: I want to trade on a DEX because DEX is a decentralized exchange, and no one controls it. Transactions can be conducted freely; traders can deposit their funds into a liquidity pool while earning interest from the transactions being made.
In contrast, on a centralized exchange, people are not required to deposit money into a liquidity pool; instead, the company provides the liquidity and ensures the transactions.
So, I want to look into a coin project and see how it works and if the community behind it is halal. I would like to benefit from it while it is still new, as trading on DEX for buying or selling could make the coin haram. However, since I am not depositing money into the LP, but the LP facilitates the transactions, would it be haram for me? In other words, does it involve riba, or is it acceptable for me to trade?
The hope of this world is less than the Hereafter.
Thank you all.