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Is DeFi lending (Aave, Compound) halal?

DeFi lending platforms let you deposit crypto to earn a yield, or borrow against collateral for a fee. That yield and that fee are interest.

Interest (riba) is explicitly prohibited regardless of the rate or the technology delivering it. So protocols whose core function is interest-based lending — Aave, Compound, and similar — are viewed by most scholars as impermissible to earn from.

This is why such tokens carry our "concerns" status. Providing liquidity for trading fees is a separate question with its own debate.

This website is an educational resource, not a religious edict (fatwa). Qualified scholars differ on cryptocurrencies; the assessments here are based on widely-recognised principles of Islamic finance and are provided for learning only. Always consult a qualified scholar before making any decision, and remember that nothing here is financial advice.