Lending/Borrowing coins: are they halal?

What is Lending/Borrowing?

Lending/Borrowing coins power protocols where users deposit capital to earn yield and borrowers draw from that pooled capital against collateral, in exchange for an interest payment.

How CryptoUmmah screens Lending/Borrowing coins

Riba is the most direct and unambiguous concern of any category we track — this is the purest form of interest-bearing lending in crypto, structurally replicating conventional bank deposits and loans through a smart contract instead of an institution. Our revenue model, interest assessment, and treasury criteria are almost entirely decisive for this category, and the ten riba-specific criteria in our methodology are built with exactly this mechanism in mind. Very few coins in this category score above the Haram threshold on riba specifically, regardless of how transparent or well-audited the underlying protocol otherwise is. Across the 8 Lending/Borrowing coins we've screened, the average Shariah compliance score sits at 46.5/100, with 0% classified Halal, 25% Mashbooh, and 75% Haram.