Report

Is Making Money From LP in Cryptocurrency Halal or Haram?

When it comes to cryptocurrency and financial innovation, one of the most common questions we face is about liquidity providing (LP): Is it halal to earn profits as a liquidity provider in cryptocurrency? This question arises because, as Muslims, we strive to ensure our earnings align with the principles of Islam. Let’s dive deep into this topic to understand its nuances and determine whether LP income is permissible or not.

What Is LP in Cryptocurrency?

A Liquidity Provider (LP) pool enables seamless trading between two assets in decentralized finance (DeFi). Imagine a market stall: instead of a person exchanging apples for oranges, the LP acts as a pool of both fruits, facilitating trades for the buyers and sellers. For their contribution, LPs earn fees proportional to the trades they enable.

Like a currency exchanger in the real world, LPs facilitate the exchange of one currency for another, earning a service fee. If the underlying assets are halal (e.g., stablecoins or cryptocurrencies with clear use cases and backing), LP participation is more likely halal.

Does a money changer convert any currency in a traditional exchange? No, money changers do the exchange work according to the currency that is guaranteed. So, to participate in LP, use halal currency pairs and currencies that are known. Currencies that do not have precise specifications or have high risk are not suitable for LP.

Here’s an important distinction: LPs don’t directly conduct the transactions. Instead, they provide the liquidity that keeps the decentralized exchanges (DEXs) functioning smoothly. This fee earned by LPs is what sparks the debate–is it halal or haram?

Does Earning From LP Resemble Riba (Interest)?

In Islam, any income derived from interest (riba) is strictly prohibited. To assess whether LP earnings fall under this category, let’s break it down step by step:

1. The Nature of the Fee

The fees earned in an LP setup are not based on interest but rather on providing a service. It’s similar to how a currency exchange (money changer) earns a fee when facilitating a transaction between two currencies. They offer a service, not a loan.

2. No Transactions, No Income

In an LP, fees are generated only when trades happen. If no one uses the liquidity pool, the LP earns nothing. This aligns with the principles of Islamic trade, where income is tied to effort or service. There’s no guaranteed return, removing the element of fixed interest.

3. Avoiding Risk and Gharar (Uncertainty)

Islamic finance emphasizes avoiding excessive risk or ambiguity (gharar). The currencies you provide to an LP pool should be halal, transparent, and stable. Risky or speculative currencies, often involved in pump-and-dump schemes, bring gharar into the equation and may render the activity impermissible.

Three Essential Rules for Halal LP Earnings

To ensure your earnings as an LP are halal, adhere to the following principles:

Transparency in Currency Pairs

Always provide liquidity using known and established currencies. For example, pairs like ETH-USDT or USDT-USDC are widely recognized and less speculative.

Avoid Currencies with High Risk

Do not participate in LP pools involving currencies with vague specifications or volatile behaviors. Such currencies could lead to unpredictable outcomes, which Islam discourages.

No Fixed Returns

Avoid any LP pools or DeFi platforms that promise fixed returns. This could potentially resemble riba and must be avoided. Instead, rely on the service-based income generated by transaction fees. In all LPs, the profit percentage is known, but this number is not fixed and changes on a daily basis or due to the increase in demand and crowding of the blockchain. Basically, receiving guaranteed fixed interest is wrong and Haram(forbidden).

LP Earnings: Halal or Haram?

In conclusion, participating in an LP pool where the principles of Islamic finance are upheld–such as transparency, no fixed returns, and low gharar–can be considered halal. However, any engagement with currencies or platforms that lack clarity, involve speculation, or guarantee returns should be avoided. If you still have doubts about LPs, you can ask us. We have access to many Islamic scholars and can ask them your questions.

If you’re unsure about a specific pool or currency, it’s better to take a step back and conduct thorough research. Aligning your actions with Islamic principles not only ensures halal income but also brings barakah (blessings) into your wealth.

By following these guidelines, we can navigate the world of cryptocurrency with confidence and ensure our earnings remain pure and permissible. Together, we can embrace modern financial opportunities while staying rooted in our faith.

CryptocurrencyIbadah / Acts of WorshipReligionReportWhat We Do

Donate to Muslim Community Using Cryptocurrency

In the digital age, the world of charitable giving has evolved dramatically, offering us new ways to contribute to causes we care about. For many Muslims, donating through cryptocurrency offers a way to support Islamic charities while aligning with values like privacy, transparency, and financial security. However, one question often arises: Is crypto a secure method to donate to Islamic charities?

How Crypto Donations Offer Security and Privacy

When you donate to an Islamic charity using cryptocurrency, you benefit from a high level of privacy and security. Blockchain technology underpins cryptocurrencies, creating a decentralized, tamper-proof ledger that ensures your donation reaches its intended purpose without interference. Furthermore, by donating in crypto, you protect your privacy because there’s no need to disclose personal information. Our Islamic Charity allows for anonymous donations, meaning no questions about your wallet or personal information. You choose the level of anonymity and only provide an email if you want confirmation of your donation or updates on significant events like Ramadan. You can read the Donor Privacy Policy here.

Transparency and Trust: Why Crypto Is Ideal for Islamic Donations

One of the standout features of cryptocurrency is its transparency. Every transaction is recorded on a public ledger, accessible for anyone to verify. This transparency is especially valuable for donors who want to ensure that their contributions go directly to the causes they support. For Islamic charities, this aligns with core values of honesty and integrity. Using crypto to give Zakat, Sadaqah, or other charitable contributions reinforces trust in the donation process, making sure every Satoshi or USDT serves its intended purpose.You can see the programs and ways of helping the Muslim community here.

Ease and Flexibility for Muslim Donors Worldwide

Crypto donations transcend borders, enabling Muslims from anywhere to support Islamic causes in countries where banking systems may be limited. This flexibility also ensures that your donations are processed quickly and securely, without delays common in traditional banking. As we approach important seasons like Ramadan, the ability to donate instantly becomes crucial for those aiming to fulfill Zakat or Sadaqah commitments promptly.

Securing Your Faith and Privacy Together

At Our Islamic Charity, we value your trust and strive to provide a safe, flexible donation platform. With no requirement for additional details, we respect your privacy as much as your generosity. Donating anonymously with cryptocurrency empowers you to fulfill your religious obligations while maintaining confidentiality.

CryptocurrencyIbadah / Acts of WorshipReportWhat We Do

It Is Our Duty to Help Flood-Affected Valencia: Together, We Can Make a Difference

In the face of adversity, our humanity binds us closer. As we witness the devastating floods in Valencia, Spain in 2024, we are reminded that helping each other is more than an act of kindness–it is a duty that unites us all as children of Adam and Eve. Regardless of our backgrounds, beliefs, or borders, we share a profound responsibility to stand beside those in need, especially during times of crisis.

With a Muslim population of around 2.5 million across Spain and approximately 100,000 in Valencia alone, our Muslim brothers and sisters are directly affected by these floods. But this is not just a challenge for one community; it is a moment for all of us to come together, with open hands and open hearts.

As “Our Islamic Charity,” we are honored to provide crucial support to the people of Valencia. With the help of crypto donors like you, we have already started sending essential relief items, but our mission is far from over. In this article, we’ll walk you through the significance of these efforts, the impact of your support, and the steps we are taking to uplift those affected by this calamity.

United by Faith and Humanity: Our Shared Responsibility

In times of distress, Islam teaches us to act with compassion and empathy. The Quran reminds us that we are all children of Adam, responsible for each other’s welfare: “And We have certainly honored the children of Adam…” (Quran 17:70). This verse calls us to remember that no matter our nationality or creed, we are united in our humanity.

Our team at Our Islamic Charity believes that giving is an expression of faith, a reminder that we are here to support each other in times of need. Your donations for floods in Valencia enable us to extend this value beyond our borders, showing solidarity with our global family.

In Valencia, this flood has left countless families displaced and in need of shelter, warmth, and comfort. By working together, we can make a tangible difference in their lives, offering them relief and hope for a better tomorrow.

Emergency Aid Delivered: Meeting Immediate Needs with Compassion

Through our initial relief efforts, we have managed to distribute essential items to flood survivors in Valencia, thanks to your contributions. Our support package included life-sustaining essentials such as:

  • Drinking Water and Canned Food: When water sources are contaminated and food is scarce, these basic items become invaluable. Our team prioritized clean drinking water and ready-to-eat canned food, ensuring that families have access to safe nutrition in these trying times.
  • Hygiene Packs for Women: Understanding the specific needs of women, we provided hygiene kits tailored for their comfort and dignity. In times of crisis, personal hygiene can often be overlooked, but it is crucial to maintaining health and morale.
  • Warm Clothes and Baby Packs: For mothers and babies, we prepared special packs including warm clothes and other essentials to protect them from the cold and maintain their well-being. These packages aim to bring warmth and comfort, especially to those most vulnerable.

As our small local team works tirelessly in Valencia, they embody our commitment to provide relief with respect and compassion. These efforts would not be possible without the generosity of crypto donors who understand the urgency of this mission.

Your Crypto Donations: Powering Our Continued Humanitarian Efforts

Our work in Valencia is far from over. While we have made strides in providing initial relief, there is much more to be done to ensure long-term support for those affected. With your help, we aim to strengthen our presence in the region, establishing temporary shelters and offering continued assistance as the community rebuilds.

By choosing to donate in crypto, you empower us with a secure, transparent, and efficient method of funding that reaches the people who need it most. Crypto donations allow us to respond quickly, ensuring that aid reaches communities without delay. This speed and security in giving mean we can make an immediate impact, amplifying the power of every donation.

Supporting Valencia’s recovery is not just about restoring what was lost; it’s about rebuilding lives, restoring hope, and nurturing resilience. As you donate, you stand with us in our mission to serve humanity, to bring relief to those in crisis, and to share the blessings we are fortunate to have. You can donate to Valencia Spain Flood from here with Bitcoin or Ethereum and other cryptocurrencies.

Together, We Can Light the Path to Recovery

The call to help our brothers and sisters in Valencia transcends geographical boundaries, reminding us that we are part of a shared world. In the Quran, Allah says:

“Whoever saves one–it is as if he had saved mankind entirely” (Quran 5:32).

This verse resonates deeply, especially during times like these, urging us to act and make a difference where we can.

Our Islamic Charity is committed to continuing this journey of aid and compassion, reaching out to those affected in Valencia and beyond. By donating to our cause, you become part of this mission. You become a source of hope, a beacon of kindness, and a testament to the power of unity.

Let us stand together, embracing our role as stewards of mercy and compassion. Let us rebuild Valencia, one act of kindness at a time.

Disaster ReliefHumanitarian AidProjectsReportWhat We Do

Baalbek, Lebanon: Crisis and Displacement Amid Conflict in 2024

As our team at Our Islamic Charity responds to ongoing crises, our hearts and efforts are drawn to Baalbek, Lebanon–a city under severe strain due to recent conflict. Families have been torn from their homes, and the war’s toll is visible across this ancient, once-vibrant city. Many of the displaced are vulnerable women and children, struggling to find safety and basic resources as they’re forced to the Lebanese-Syrian border in search of refuge.

With the approaching winter, our work is only becoming more urgent. Together, let’s delve into the current crisis facing Baalbek and how we, as a united ummah, can provide meaningful, impactful support to those affected.

The Crisis in Baalbek: Conflict and Displacement

The city of Baalbek, a historic landmark and cultural center, has recently been thrust into turmoil. Bombings and ongoing skirmishes have led to significant destruction of infrastructure, leaving many homes and essential buildings in ruins. As a result, families are fleeing northward toward Lebanon’s border with Syria, where they face grueling conditions and inadequate shelter.

For many, the journey is filled with hardship. Women and children, the most vulnerable, are bearing the heaviest burdens. The cold autumn nights are fast turning into harsh winter conditions, and those who have managed to escape face chilling temperatures with little to no access to heating equipment, warm clothing, or sufficient shelter. Tents are few, and the limited heating sources like oil and diesel are nearly impossible to acquire due to the danger and complexity of transport.

The Urgent Needs: Food, Water, and Shelter

Securing basic resources has proven difficult under these circumstances. Our brothers and sisters lack the simplest yet most essential items: clean drinking water, dry food, and other necessities to make their temporary shelter survivable. Providing even the basics for cooking–such as potatoes, onions, and tomatoes–is hindered by long and often restrictive inspections along transport routes. Our charity is working to deliver durable food items like beans and dry grains that can withstand the journey, insha’Allah, but we must be prepared for long wait times and limited quantities.

Without sufficient clean water, health risks rise, especially among children and the elderly. The harsh weather, combined with a lack of sanitation, increases the risk of illness. Our aim is to ensure that every family has at least the bare essentials to cook, stay warm, and remain safe from preventable diseases.

How You Can Help: Crypto Donations for Baalbek

We at Our Islamic Charity believe that every bit of help makes a profound difference, and your support can directly impact these lives. For those who wish to contribute, we are accepting crypto donations, a secure and efficient way to deliver aid amidst these complex circumstances. Crypto donations allow us to quickly convert funds into vital supplies and distribute them where they’re needed most. By donating, you become part of a resilient network of support for our brothers and sisters in Baalbek in Lebanon.

Every donation, whether large or small, fuels our mission to bring relief to those enduring unimaginable hardship. Your contributions help us stand beside the people of Baalbek, provide warmth and nourishment, and, ultimately, affirm our collective humanity and commitment to charity as guided by our deen.

Standing Together as an Ummah

The plight of Baalbek’s people is a reminder of our duty to support each other through trials. The Quran and Hadith encourage us to give charity, especially to those suffering from war and displacement.

The Prophet Muhammad (peace be upon him) taught that we are like one body; if one part suffers, all parts feel the pain.

Together, as an ummah, we can help our brothers and sisters overcome this difficult period. Let us remain steadfast in our commitment to provide relief and comfort to those in need, demonstrating our shared faith and compassion.

In these times of hardship, may Allah bless our efforts and grant ease to the people of Baalbek. We pray for their protection and strength and remain committed to standing by them. Join us in this mission, and let’s work together to bring light and hope to those in darkness.

 

 

Humanitarian AidIbadah / Acts of WorshipProjectsReportSadaqahWhat We DoZakat

Supporting Women and Childrens in Sudan

In Sudan, where turmoil and insecurity loom heavily, women and girls face incredible challenges. For those of us in Our Islamic Charity, this crisis is a call to action. We understand that every woman and girl deserves safety, dignity, and the chance to thrive, even amid hardship. As instability rises due to armed groups and a lack of secure infrastructure, our mission is to bring critical aid to women and children, ensuring they can find refuge, hope, and a safe pathway forward. This article delves into our two-pronged strategy to support Sudanese women and girls in need, focusing on strengthening facilities in larger camps and creating safer, more secure communities.

The Plight of Sudanese Women and Girls: Seeking Safety and Security

Life in Sudan today is far from ordinary. With autonomous militias and ongoing insecurity, Sudanese women and girls face an elevated risk of violence and deprivation. Many are left vulnerable, especially in remote villages, which are often isolated from critical resources and secure locations. The safety challenges are stark, and we’re committed to taking action.

Through Our Islamic Charity, we’re taking steps to address these urgent needs in Sudan, beginning by focusing on locations like Darfur, where many women and children have been displaced. Our goal is to bring these women into safe, protective spaces where they can access essentials such as clean water, healthcare, and food. We also aim to offer them an environment where they feel valued and empowered, fostering resilience amidst adversity.

Strategy 1: Strengthening and Expanding Refugee Camps in Darfur

One of our primary objectives is to enhance the facilities within established camps, particularly in Darfur. Many camps in this region, like Kalma Camp in South Darfur and El Fasher Camp in North Darfur, are home to thousands of displaced women and children. By increasing resources here, we can ensure that these women and girls have access to necessities–food, water, healthcare, and security.

Crypto Donation Women in Sudan zakat BTC ETH

The existing camps are often stretched thin. Expanding these facilities not only provides immediate relief but also improves the long-term infrastructure to handle new arrivals. By reinforcing these camps, we give women and girls an opportunity to live in a safer environment, receive care, and access resources for a more hopeful future. As we bring in resources like self-care stations, community kitchens, and healthcare tents, we empower these communities to begin rebuilding. You can now donate crypto to women and children in Sudan from here.

In this environment, where every new addition can transform lives, we want these camps to be centers of strength and resilience. Our dream is to create spaces where women and girls can thrive, receive training, and even begin generating income to support themselves.

Strategy 2: Uniting Villages and Relocating to Safer Zones

Beyond the camps, many Sudanese women and children live in small, remote villages scattered across the countryside. In these isolated communities, insecurity is even more pronounced, and resources are almost non-existent. Our second strategy is to unify these smaller villages, bringing people together into larger, safer areas closer to urban centers. By creating these bigger communities, we can offer enhanced protection measures and a greater level of social and healthcare services.

This approach isn’t just about relocating people; it’s about building a supportive environment. For many women, leaving their village can be emotionally and culturally challenging. We work with local leaders to create a smooth transition, ensuring that these larger communities retain the values and customs that are central to the lives of these women. By building community within these new areas, we’re not just providing protection but also fostering a sense of identity and belonging.

The move to these more secure zones also allows us to set up essential facilities faster. In these bigger communities, women and girls can access healthcare services, schooling, vocational training, and food supplies without needing to travel long distances. These are all among our various programs to support women, which you can donate under the name of special programs for women.

Empowering Sudanese Women and Girls: A Collaborative Effort for Lasting Change

Building safe spaces and a sense of community is just the beginning. We know that to truly empower Sudanese women, we must focus on long-term sustainability. This means not only protecting them from immediate threats but also equipping them with skills and knowledge to become self-sufficient. Through Our Islamic Charity, we offer training programs in healthcare, education, and small business skills, encouraging women to find ways to support themselves and their families.

Each woman who gains confidence, each girl who finds her voice, strengthens the entire community. Our mission goes beyond emergency aid; it’s about giving these women and girls the tools to live resiliently and independently.

Our work in Sudan isn’t easy, but it’s a calling that binds us together in Our Islamic Charity. By reinforcing shelters and creating safe communities, we stand side by side with Sudanese women and girls, championing their right to live with dignity, security, and hope. Through every challenge, we remain committed, building a future where these women and girls are not only safe but are also empowered to shape their own destinies.

HealthcareHumanitarian AidIbadah / Acts of WorshipProjectsReportWhat We DoWomen’s Programs