#ETHRally Whether DeFi (Decentralized Finance) is ḥarām or ḥalāl depends on the specific project, how it works, and the principles of Islamic finance.

In Islamic law, a financial product is usually considered ḥarām if it involves:

Ribā (interest or usury)

Gharar (excessive uncertainty/speculation)

Maysir (gambling)

Investments in prohibited industries (e.g., alcohol, gambling, pork)

Many DeFi platforms involve lending with interest, highly speculative trading, or yield farming based on ribā-like returns—these would be ḥarām. However, there are emerging Shariah-compliant DeFi projects that avoid interest, use profit-sharing models, and focus on asset-backed trading.