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.
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.
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.
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?
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 ?
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.
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
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
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
السلام عليكم و رحمة الله
أخي العزيز انا صاحب قناة كريبتو اسلام ، و انا اطالبك بحذف هذه القائمة و هذا المنشور لانه لا يمت بأي صلة لقناة كريبتو اسلام
كثير من العملات حذفتها و بعضها تغير عندي حكمها .
و قد بينت خطورة هذا المنشور و ايضا تبرأت من هذه القائمة ، و انا لا اسمح لاي احد ان يأخذ عملات كريبتو اسلام و ينشرها في قائمة مصورة .
اطالبك بحذفها الان اخي الكريم و من اراد الاستفادة فليستفد من قناة كريبتو اسلام مباشرة .
My dear brother, I am the owner of the Crypto Islam channel, and I ask you to delete this list and this post because it has nothing to do with the Crypto Islam channel.
Many currencies have been deleted and some have changed their ruling.
I have shown the seriousness of this publication and also disavowed this list, and I do not allow anyone to take Islam’s cryptocurrencies and publish them in an illustrated list.
I ask you to delete it now, my dear brother, and whoever wants to benefit, let him benefit from the Krypto Islam channel directly.
