But actually you can not sell £100 for $110 after one month. There is a clear Hadith about that. It must be finalized in the same session, hand-by-hand, - aka here moved to your account or wallet and be able to directly spend it as you like.
It’s called Taqabod تقابض in Arabic, I think it’s palpation in English.
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Some or all Proof of Stake models choose which node to give the right to create a token/coin based on randomness (the more tokens you have, the higher your chances of being chosen). Example: Cartesi (CTSI): https://www.coingecko.com/en/coins/cartesi
“Node runners are selected randomly according to a PoS system and gain the right to create the next block.”
Does this make this specific PoS haram? Or is this how all PoS work? Is randomness in a financial system halal?
While I cannot answer your specific question on the permissibility, I can differentiate the 2 from the article.
Liquidity mining is when you use your cryptocurrencies in a pool to increase liquidity for certain tokens on a market. This attracts a share of the trade fees as a reward and a share of another token (called governance token) that is specific to the platform.
Yield farming starts when you extend this a step further by using the rewards from your initial liquidity mining in the form of fees and governance tokens as liquidity on other platforms in order to generate additional income. You can do this ad Infinitum, hence the idea that seeds’ spread on different DeFi platforms can allow a farmer to enjoy a good ‘harvest’ after a while.
I have no idea if any of it is permissible.
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Assalāmu ʾalaykum,
Thank you for your breakdown!
I just have one comment…
Because staking in and of itself is permissible, it’s also permissible to let someone else stake for you. The important aspect to consider is the agreement made between you as an investor and the person that will stake for you.
If that person pays out a fixed percentage of your investment, then you’re right. That’s the same as interest.
But if that person pays out a fixed percentage of the rewards, then that can be considered as sharing the rewards. And that’s permissible.
So if, for instance, 100 US dollars worth of BTC are staked in return for a fixed percentage of 10%, and you have agreed with the person that does the staking that that reward of 10% will be divided 50/50 between that person and yourself, then that’s permissible.
I’m not a scholar and I could be wrong. But this is based on the way I interpreted all the answers of @Mufti_Faraz_Adam about this topic.
I ask Allah to forgive me if I’m wrong about this. Allah knows best.
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I recently found an article about this topic:
You can also watch it on YouTube. What are your thoughts about this? Does this mean that staking is only haram if you are lending? I think COMPOUND uses this system and this is why it is haram, but as I know you are not lending your crypto to anyone if you stake a different cryptocurrency on Binance, Coinbase etc.
Hi,
I have a question… is earning crypto while sleeping on binance with flexible terms halal or haram. And what about staking coins locking them for a period of time and earning APY?
Salamalaykum
My question Is CHZ token hal to trade??
I don’t ask for stake with them only to buy it and to sale it later?
Assalamu Aleikum Sheikh!
I put my money on PoS of UMI crypto. The token was going up and staking was roughly 30 % a month ! Or 360 % a year! So, I was wondering if it was halal or not. First I told myself: Well I’m being rewarded for my service in authenticating transactions. But today I pulled out. Is it normal to have a rate this high ?
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Alsalam Alaikum Sheikh
Please, could you enlighten us if investing in Safe moon crypto halal or Haram? I think it follows the incentives system. I have some money in it. And, i do need your help and Fatwa in that regard.
Jazak Allah Khair Al jaza’
Aoa dear mufti.
My question is regarding future trading and margin trading. Is it halal ??
the use of leverage is haram bro
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bro staking cake token in pancakeswap is halal ?
bro staking cake token in pancakeswap is halal ?
bro staking cake token in pancakeswap exchange is halal? where we get reward in form token that is not fixed. and we no one use our token we cab unstake at any time and again stake
السَّلاَمُ عَلَيْكُمْ وَرَحْمَةُ اللهِ وَبَرَك
I would like to know if Reinvesting your rewards gained from proof of stake is considered riba. That being adding your rewards from staking to the initial investment to acquire a larger reward.
Replies would be greatly appreciated.
جَزَاكَ ٱللَّٰهُ خَيْرًا
There is now an IFG article on this:
Staking in pancakeswap in syrup pool
Is it permissible?
Salam Ustad,
My question would be that by staking if we are strengthening the blockchain or tokens we stake so for example if we stake CAKE (Pancakeswap token which is a DEX-decentralized exchange), then do all tokens pancakeswap as a DEX facilitates benefit from that? if yes then are we indirectly helping in strengthening the blockchain or the function of tokens whose business/service is based on Haram means such as alcohol promoting tokens hosted on the pancakeswap platform? Would appreciate the guidance
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Hello brother
May i know how do you stake for uniswap ?
On which exchange platform you do this ?
Dear Shaykh,
Is Casper a halal coin?
https://casper.network/en/network
Here’s their website link.
Jazakumullah khayran