Salaam,
I think what the brother was trying to ask (I have the same query) was in relation to how “interest” is paid by companies likes Crypto.com by staking/storing crypto assets to them where they give a fixed percentage return for depositing the crypto assets (percentages vary for the chosen Crypto asset). Is the “interest” they mention here permissible, providing the asset held is a halal one, or is it a form of Riba to deposit in such a way?
Wa alaykum salaam,
Can you please provide more information regarding this like a specific link?
Regarding Crypto.com, they call their staking process “Earn”. You’ll find more info here:
Other platforms offer the same option to stake coins for yearly or weekly rewards/interests. Another popular platform would be the Celsius Network, & the third one would be Blockfi.
(I would have posted links to both websites explaining their process, but I could only post one link as a new user)
I hope the link provided will contain what is needed for your research, Shaikh.
I am also interested in this concept of staking coins for interest; it seems to be somewhere between a service, & riba interest, depending on how & from where the platforms acquire the rewards for stakers. It would be great if you could give us some insight on this matter, Shaikh. Baarak Allaah feekom.
Salam 3alikom,
Is staking in Binance exchange such Bella Protocol in Launchpool
Halal ?
Thanks in advance
Regards,
Wa alaykum salaam,
We do not do token screening here. If you want a particular token reviewed, you can visit www.amanahadvisors.com/token-screening
My question wasn’t about screening, just about Fatwa Halal Haram of PoS,
Mentioning the name of token was just as example to clarify the question
Thanks
اخوي احمد بغيت اعرف الحين عملة بايننس حلال ولا اذا عندك علم ثنين هل ستيك على بايننس كوين حلال ولا لا اذا جاك العلم علمنا يابعدي
Assalaamu Allaikum Wrt WBT to you all.
I am an Islamic Finance student, I have a project regarding permissibility or shariah viewpoint about Staking in cryptocurrency. I will be very grateful if I may be directed to resourceful sources (journals, articles, other publications, etc)
Jazakumullah Khairan!!!
Staking depends on the nature of the token. The entire token would have to be reviewed. At such an early stage in the area, it is better to be sure of the entire project or token before commenting on a particular activity.
Okay noted with thanks Mufti. However, we are having a meeting with the company to discuss about their products and how the tokens function. Jazakallahu Khairan
Salam Mufti - May I ask about the new trend DeFi (decentralized finance) yield farming coins. Are the farmed coins considered as haram interest? For example, take YFI from yearn.finance and CRV from curve.fi. YFI coin is reward coin from farming on certain pools by putting certain cryptos to earn YFI. Similar with CRV and other new farming coins. More I found about yield farming coins can be found here but may not be all info you need: https://academy.binance.com/blockchain/what-is-yield-farming-in-decentralized-finance-defi
Now Binance is doing a yield farming for Bella (BEL), but in this scenario, Binance as a cetralized exchange is doing it. Very similar to DeFi platform. Now are these farmed coins halal? They can also be traded.
Wa alaykum salaam,
This is very similar or close to Riba and has major Shariah concerns. Best to avoid the product altogether.
Salaam Mufti, I understand that riba is when one “lends” money to another person or organization and “contracts” receiving more money then the principal amount when paid back. In many cases with cryptocurrency, tokens are locked in a blockchain contract and given native token rewards and in no way is it considered being lent out to an individual or organisation but only locked as an incentive to hold and not sell tokens. In this specific case would it be permissible to recieve the reward tokens or would you consider that reward riba? I ask this question because many tokens are evolving very rapidly and changing protocol, tokens once easily understood as halal may evolve as being impermissible by adding lending defi dapps and so forth.
This is the issue why a general answer can never be given in these matters because the pace of development means that things can become non compliant very quickly.
In the specific example mentioned by DL37744495, would staking as a holding incentive be permissible? The funds are not normally transferable from the holding contract, except by the original depositor. Would any rewards be considered Riba?
In the scenario where no funds move from the depositers accounts and nobody else uses those funds and nor are they made available to anyone else, then that would not constitute Riba.
Allah knows best
JazakAllah for the clear response.
Selam Aleykum,
I would like to know if it’s allowed to stake your coins like in crypto.com. Please give me a detailed answer.
Thank you
Assalaamu alaykum,
It all depends on what is happening when your tokens are staked on the platform, which tokens are staked and what is happening in the pool whilst they are staked.
Allah knows best
AOA, I want to ask a question that if I can stake “Fact token”. It’s a new defi token. Can you please advice if this is halal?
I am sharing the token URL below.