Liquid Staking Tokens coins: are they halal?

What is Liquid Staking Tokens?

Liquid Staking Tokens represent a staked position on another network, issued so holders can keep their staked capital liquid and usable elsewhere while still earning staking rewards.

How CryptoUmmah screens Liquid Staking Tokens coins

Riba is the central and most direct concern, because liquid staking tokens are structurally derivative of an underlying staking reward — and where that underlying reward is behind a fixed or guaranteed rate, or where the liquid token itself gets re-lent or re-hypothecated for additional yield elsewhere, it reintroduces a lending-like structure through a second layer. Our staking classification and interest assessment criteria are applied to both the base staking mechanism and the liquid derivative layered on top of it, since a clean base staking design can still be undermined by what happens to the liquid token afterward. Across the 18 Liquid Staking Tokens coins we've screened, the average Shariah compliance score sits at 65.1/100, with 39% classified Halal, 44% Mashbooh, and 17% Haram.