Assalamu alaikkum,
Brother , Is investing in defi tokens halal?
Any Defi tokens for recommendation if its halal…
Kindly advise
Thanks
Jaseef Jamal
I am a lay person (in terms of Islam), but I personally do not see a reason why decentralised finance can be said to be haram.
In fact, some sheikhs and scholars who say crypto is haram incorrectly (in my opinion, Allah knows best, may Allah SWT have mercy upon me and us all) say that these cryptos can be banned and shut down rendering them worthless. Surely then DeFi is permissible because it cannot be shut down by a central authority? Defi solves the issue that they raised.
It seems to me that the ruling on DeFi would be the same as cryptos in general.
It would be great is someone with more knowledge than me can confirm if I am correct. I am only replying to try and ease the burden on the forum admins and Mufti.
Allah SWT knows best.
Jazak Allah Khayr
As Salaamu Alaykum
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I would like to make a correction. I am not sure. I was placing more emphasis on the decentralised aspect, thinking you were concerned that might not make it halal.
Upon doing further reading, it appears that DeFi systems use, or at least often use, riba based loans. I think this is something that requires further research on an individual crypto-by-crypto basis.
My apologies for my confusion. May Allah SWT have mercy upon me and us all.
Jazak Allah Khair
As Salaamu Alaykum
It would be appreciated if any of the Muftis or admins could reply confirming my suspicion that a blanket ruling cannot be given on this issue