Defi, Yield Farming, Staking & Liquidity Mining | Islamic Perspective?

In this video we dig deep into yield farming, staking, liquidity mining and DeFi. What do these terms mean? How should a Muslim understand them? How should you invest in crypto?

We conclude that for each of these crypto concepts, it really depends on the particular context – but really high level – staking and mining are usually fine, while with yield farming and DeFi you should be particularly careful and many things are not halal.

I also share what I have invested in!

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00:00 – Introduction
02:34 – What do these terms mean?
05:24 – What is halal for Muslims?
07:48 – What is our Sharia view?
09:05 – What I invested in
10:05 – Outtakes

Who are we:
We are two Oxford grads who have studied Islamic finance both at uni and classically for over 6 years. We quit our corporate law jobs to go full-time on IFG in 2020. We are on a mission to help 25% of the world’s population with their personal finances.

Islamic Finance Guru (IFG) is an Islamic finance comparison and analysis site that helps people with their investment, personal finance and entrepreneurial journeys.

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  1. Staking for example Ada or Eth is strengthen the blockchain thus rewards for helping out.

  2. I am a blockchain developer and always doubting if the things I am doing halal or haram ?

  3. You are not responding to question on youtube or twitter.Please we are your audiences

  4. Thanks for the video brother. It’s rare finding a YouTube video discussing crypto topics while taking islamic principles into account these days. Kudos for looking into this.

    In my opinion I would consider solid PoS projects such as Cardano, Ethereum, and likewise projects permissible as long as the underlying assets and activities are within the permissible boundaries of Islam. The said coins are staked and doing actually “validation work” strengthening the network. In a given liquidity pool, as for the native ADA token for example, the reward is subject to change from time to time (every epoch), thus making the passive income returns somewhat flexible.
    Whereas, fixed returns for stable coins through lending wouldn’t fall into this category, it is essentially similae like a bank, right.

    Correct me if I’m wrong, I think the brother from practical islamic finance youtube channel had favorable comments on this staking topic as well. Having said that, I’m not financial nor fatwa advisor :D
    Keep the videos coming.

  5. Thanks to everyone out there for introducing this life saviour to us🙏 I can’t stop appreciating his thrustworthiness in my life am sure many will have been helped and saved..me and family are grateful to you once again Sir

  6. Please make a video on “Binance Future Trade” is it Haram? If it is then why it’s Haram…

  7. Salaam

    Jzk for this fantastic and informative video

    Just have a quick question about liquidity mining/pooling

    From what I understand if you were to provide liquidity for a decentralised exchange where spot trading is taking place, this would be permissible. You would earn your rewards off the fees from the trading.

    What if the decentralised exchange also provided margin and leverage on top of spot trading. Would it now be impermissible to take part in providing liquidity for the decentralised exchange


  8. Aslam alikum. Jazakallah khair… Can u plz tell which all coins which are Halal to stake. The major onces atleast. And what u r doing. So we can have better insight and follow and learn from you.

  9. You need tho has Bitcoin lightning payment channel for us, as follower this channel can donate to you for creat great content like this for a Muslim

  10. Asalamualaikum bhai when you are opening your wahed investment. So we can invest peacefully. With out any doubt.

  11. how about game like axie etc? can you tell us about it in islamic perspective?

  12. Salaam with Pancake liquidity mining do they not also include additional rewards such as CAKE (ie. Yield farming) on top of transaction profits ? I’m confused because I am lead to believe that Yield farming isn’t permissible or is it?

  13. Asalamu alaikum, can u please tell about where investing in Vchain is halaal or haraam? as i read somewhere that they are having some sort of association with alcohol company?

  14. Woah, ur videos rock! What about HydroLink tho? I wanna take part them more and more… it is a amazing idea to multiply your assets by investing in green hydrogen (eco-friendly energy), isn’t it?

  15. Hmm… I can’t agree with all of yar statements. Btw it would be promising to understand what u think about Syncronauts NFT. ya cannot be wrong about this amazing platform, right?

  16. JazakAllah. We need more Islamic research in theses. Thanks for your effort. Could you please enlighten us with crypto dividends when you hold a crypto and you get dividends which is based on a pool made from transaction fees and transfer fees but no interest involved. Like iBNB
    What about deflationary tokens like BIT where same principals apply.

  17. Can someone please look into “defi time wonderland” staking and tell us if it’s halal? They don’t lend, they just lock the coins, but it’s defi ecosystem so?

  18. Please can someone answer me.
    I want to start staking in Wonderland time,they have 88000% returns.
    But I dont know if its halal or not.
    Pls answer me.

  19. Excellent show !!! Allah bless your show with great hikmah. This is really useful stuff for many muslim brothers across the world

  20. Salam, is Staking LP token, and earning from those token are permissible from your humble opinion uncle ibrahim?

  21. Sir I have a question regarding crypto mining through cloud mining.. Someone ask me for the investment of 30 dollars in his crypto mining and withing 5 hours, profit will be 50000. Is it halal? Plz answer as soon as possible

  22. Many thanks; Excellent video; as a muslims we really need some clarification on these topics , old school scholars do not know a lot about this new blockchain technology that is why it is easy for them to say haram without properly look into these project individually.

  23. Before going beyond the first minutes of the video I must point out the glaring issue in your group’s name: “Guru”. Islamic “Guru”. How did you guys miss this? I really think you should rebrand

  24. i got a question, whats your opinion of crypto staking with very high annual percentage returns (APY) e.g OlympusDao (OHM) or klimaDao? i know these APYs will return to normal but when the project starts its very high to increase the liquidity.

  25. Is staking halal plz simple answer.
    Estd apy yield is 100% for 30 days.
    Terms sound like interest

  26. Binance Saving Plans Is Permissible? I Recently Added My USDT On Binance Flexible Savings plan with 10% APY IS It Halal Or Haram? In Binance Earn Section? Guide me I am Having Doubts in this saving plan?

  27. can we buy and hold crypto coins on binance is it halal? plus which binance investment method is good?

  28. Thanks for the video. But hold on, if you’re staking in Binance, and Binance actively engages in yield farming and lending and borrowing, isnt your staking fueling those haram activities?

  29. So it means we can stake our coins at Binance which actually goes to liquidity mining at Pancake swap?