Liquidity mining, also known as yield farming, is a popular practice in decentralized finance (DeFi) where users provide cryptocurrency to a liquidity pool and earn rewards in return. These rewards typically come in the form of additional tokens.
Islamic scholars have differing opinions about the permissibility of liquidity mining:
Some scholars argue that liquidity mining can be halal if:
Other scholars maintain that liquidity mining is haram because:
When evaluating whether liquidity mining is halal, consider these factors:
For specific questions about your situation, consult with a qualified Islamic finance scholar knowledgeable about cryptocurrency.
Contact via WhatsAppIslam strictly prohibits interest (riba) in any form. Financial transactions must be structured as profit-sharing or fee-based services.
Islamic finance requires transactions to be backed by real assets or services, avoiding purely speculative activities.
Parties in a financial transaction should share both profits and risks, rather than one party bearing all the risk.