Even fully screened assets can pick up small amounts of tainted income along the way — purification means giving that specific portion back, not paying extra.

Based on Alchemix's riba, gharar and maysir screening — see how we calculate purification amounts.

Overseen by Imam Omar Siddiqi, Shariah scholar and Imam of JMIC, among others, with donations paid directly to Jamiya Masjid & Islamic Centre — UK registered charity no. 1089986. Sent wallet-to-wallet; CryptoUmmah never custodies your funds. Always verify the destination address before confirming in your wallet.

Mashbooh · Doubtful · Risky

Your exact purification amount, calculated from Alchemix's Shariah compliance score.

Your realized profit on ALCX (USD) — profit only, not principal

Amount to return0.00 USDC

to Jamiya Masjid & Islamic Centre, a registered UK charity

Purification isn't Zakat and isn't tax-deductible — it's the return of income that wasn't rightfully yours.

Scholar-verified · UK registered charity

Key facts

Chain	Ethereum
Last reviewed	17 Jul 2026

Written by ThanvirFounder, Ex Director S&P Global Energy

Reviewed by Imam Omar SiddiqiShariah Scholar

Islamic Finance Principles Assessment

Riba — Does Alchemix involve interest?

Alchemix's core function is a collateralized lending protocol whose debt (alAssets) is repaid automatically by yield harvested from underlying strategies such as Curve/Convex — a structure economically similar to interest-bearing lending, even though the yield source is variable DeFi strategy performance rather than a fixed lending rate. Separately, ALCX's own emissions follow a fixed, predetermined schedule tapering to a permanent weekly tail-emission, a feature more reminiscent of riba than of true profit-sharing. Muslim investors should treat both the lending mechanism and the emissions design as significant riba-proximate concerns.

Assessment: Riba Dominant Score: 36.5/100

Our methodology examines 10 criteria to evaluate how well Alchemix avoids interest-based mechanisms.

Alchemix earns revenue by retaining roughly 10% of yield harvested from vault strategies (historically Yearn, Curve, Convex) plus a v3 redemption fee of about 0.5%, rising to near 2% in heavy-redemption scenarios. This yield is generated from underlying DeFi lending and farming strategies whose own income can include interest-bearing stablecoin lending markets, meaning treasury inflows are not purely fee-for-service but partly interest-derived. The treasury itself holds ETH, stablecoins, native ALCX, and other yield-bearing DeFi assets, further exposing accumulated reserves to riba-linked instruments. DefiLlama records roughly $5.24M cumulative fees against about $524K cumulative revenue, none historically shared with ALCX holders.

ALCX staking rewards derive primarily from a fixed, pre-set emissions schedule — declining linearly over three years before settling into a permanent tail emission of 2,200 ALCX per week — rather than fluctuating strictly with protocol performance. This predetermined payout structure resembles a fixed-return arrangement more than a variable profit-share, a meaningful riba concern. Some pools, such as Elixir farming, do supplement rewards with actual protocol revenue, which is comparatively more defensible as performance-linked income. A floated proposal to fund staker rewards by drawing loans against treasury collateral would add a further layer of interest-adjacent complexity if implemented.

Gharar — How much uncertainty does Alchemix involve?

Alchemix carries moderate uncertainty: its mechanics, code, and financials are documented and auditable, which reduces gharar, but pseudonymous leadership, contradictory fundraising claims, and unresolved centralization findings raise it. On balance the protocol is transparent about how it operates even where it is less transparent about who built it and how it was funded.

Assessment: Moderate Gharar (Material Uncertainty) Score: 60.2/100

Our methodology examines 15 criteria including team transparency, audit quality, and governance.

Maysir — Does Alchemix involve gambling or speculation?

Our assessment of Alchemix on this principle is set out below.

Assessment: Moderate Maysir (High Risk) Score: 57.1/100

Our methodology examines 11 criteria to determine whether Alchemix is a gambling instrument or a genuine economic tool.

The Full 27-Point Screening

1. Legitimacy (4 criteria)

Criterion	Score	Analysis
Team Transparency	40/100	The founder operates under a persistent, interview-giving pseudonym ("Scoopy Trooples") with a stated background, but true identity remains undisclosed, limiting full accountability.
Fraud & Scam Risk	68/100	No rug-pull by the team occurred; a 2021 exploit was patched and users were protected, though audits flag unresolved centralization risks and an unrelated insider-trading case briefly involved ALCX trading.
Use Case Legitimacy	80/100	The protocol has documented, real-world use cases such as funding personal expenses and business purchases via self-repaying loans.
Ethical Practices	78/100	The protocol's own design is a general-purpose synthetic-asset/lending system not targeting a prohibited industry, though this specific point is not directly discussed in the sources.

Summary: Alchemix is led by a long-standing pseudonymous but publicly engaged founder, has a multi-year operating history, handled a past exploit responsibly, and is a genuine functioning DeFi protocol rather than a meme coin.

2. Project Operations (9 criteria)

Criterion	Score	Analysis
Core Protocol Business	40/100	The core business is collateralized lending funded by yield harvested from underlying DeFi lending/yield strategies, placing it functionally close to interest-based finance.
Transaction Fees	55/100	Fees (a ~10% harvest cut and a small redemption fee) are retained by the treasury rather than burned or purely returned to users.
Treasury Assets	25/100	Sources explicitly describe treasury holdings as including "interest bearing assets" generating annual income.
Revenue Model	30/100	Revenue is largely derived from yield harvested off interest-generating DeFi strategies and liquidity farming, an interest-adjacent revenue base.
Transparency	85/100	Code, contract deployments, and quarterly financial reports are publicly published on GitHub and docs.
Governance	55/100	DAO voting exists for governance, but independent audits explicitly flag multiple unresolved centralization/privileged-access risks.
Launch Fairness	45/100	The team claims no presale/external funding, yet vesting data shows Strategic and Private Round allocations and a documented investor list, contradicting the fair-launch claim.
Token Distribution	55/100	Distribution is broad via mining pools (80%), but a dedicated founder/developer pool captures a fixed share of ongoing emissions.
Speculation/Utility Ratio	62/100	The token underpins genuine lending utility and governance, though sources give no direct speculation-vs-utility usage ratio.

Summary: The protocol converts deposited collateral's yield into self-repaying loans via synthetic alAssets, retains a treasury-bound harvest fee, is open-source with DAO governance, but shows contradictions between its "no presale" claim and documented private/strategic funding rounds plus flagged centralization risks.

3. Financial Health (4 criteria)

Criterion	Score	Analysis
Protocol Revenue	30/100	Protocol revenue is sourced from yield-harvest fees tied to underlying interest-generating strategies.
Financial Status	68/100	The protocol publishes transparent quarterly financial reports and has multi-year operating history with tracked TVL and revenue.
Interest Assessment	25/100	The base protocol natively offers "interest-free" loans, but the yield that repays them is generated via underlying interest-bearing DeFi lending strategies, leaving an unresolved riba-adjacent question at the core of the design.
Audit Quality	78/100	Multiple named firms (Runtime Verification, CertiK, Y-Audit, Nethermind, aleph_v, Immunefi, Spearbit/Cantina) have audited the protocol with dated, published reports.

Summary: Alchemix generates modest but transparent revenue from yield-harvest fees and liquidity farming, has been repeatedly audited by named firms across versions, and natively performs lending itself rather than relying solely on third-party dApps.

4. Token Economics (5 criteria)

Criterion	Score	Analysis
Token Purpose	75/100	ALCX is explicitly described as a governance-and-incentive utility token, not a meme asset.
Governance Rights	80/100	ALCX holders have documented on-chain voting rights over protocol proposals.
Rewards Distribution	30/100	Rewards follow a fixed, pre-defined emissions schedule (declining then permanent weekly tail emission) rather than being purely variable/performance-linked.
Speculation Controls	30/100	Only team/investor vesting schedules were found; no secondary-market anti-speculation controls are documented.
Asset Backing	75/100	AlAssets are collateralized against real crypto assets (DAI, ETH, USDC) at defined loan-to-value ratios.

Summary: ALCX functions as a real governance/utility token with voting rights, but its reward structure relies on a fixed emissions schedule and lacks clear anti-speculation mechanisms.

5. Staking Mechanism (5 criteria)

Criterion	Score	Analysis
Mechanism Type	55/100	Staking is smart-contract-based (non-custodial in nature) but explicit lock-up/flexibility terms are not fully detailed in the sources.
Islamic Contract Classification	25/100	Rewards are largely tied to fixed token emissions and a proposed loan-funded reward mechanism, resembling a Qard-with-increment structure rather than a clean profit-sharing contract.
Rewards Structure	30/100	Reward levels are primarily driven by a fixed, scheduled emissions curve rather than variable performance from real protocol activity alone.
Documentation	72/100	Emissions schedules, staking pool structures, and quarterly reports are documented in official docs.
Shariah Alignment	25/100	The combination of fixed emissions, interest-bearing treasury assets, and a loan-funded reward proposal leaves a decisive, unresolved Shariah question at the mechanism's core.

Summary: Native staking pools exist and are smart-contract based, but rewards are largely driven by fixed token emissions and a proposed loan-funded distribution scheme rather than purely variable, activity-based returns, and full lock-up/documentation details are incomplete in the sources.

Overall Assessment: Alchemix is a legitimate, audited, and transparent DeFi lending protocol, but its core yield-generation and reward mechanisms raise unresolved interest-adjacent and gharar-related questions that a Shariah reviewer would need to examine closely.

Is Alchemix halal?

RibaSharia pillar · 36.5/100 · Avoid · 10 criteria

GhararSharia pillar · 60.2/100 · Review · 15 criteria

MaysirSharia pillar · 57.1/100 · Review · 11 criteria

LegitimacyDiligence dimension · 66.5/100 · Review · 4 criteria

ProjectDiligence dimension · 50.2/100 · Review · 9 criteria

FinancialDiligence dimension · 50.3/100 · Review · 4 criteria

TokenomicsDiligence dimension · 58/100 · Review · 5 criteria

StakingDiligence dimension · 41.4/100 · Review · 5 criteria

A portion of profit from ALCX isn't fully yours to keep — here's how to return it

27-point Shariah breakdown of ALCX