Automated Market Maker (AMM) coins: are they halal?

What is Automated Market Maker (AMM)?

AMM coins power the algorithmic pricing protocols that let decentralized exchanges price and execute trades without a traditional order book.

How CryptoUmmah screens Automated Market Maker (AMM) coins

Both riba and gharar factor in here, which is why this category shows a mixed dominant concern. The riba question centers on whether liquidity provider returns are genuinely variable and fee-based (Musharakah-style) or have been engineered into something closer to a guaranteed yield. The gharar question centers on impermanent-loss mechanics and fee-model transparency — how clearly a protocol discloses the real risk of capital depreciation that liquidity providers are exposed to. Across the 35 Automated Market Maker (AMM) coins we've screened, the average Shariah compliance score sits at 59.0/100, with 23% classified Halal, 46% Mashbooh, and 31% Haram.