Is Convex Finance Halal: Is CVX Halal?

Contents

What is Convex Finance?

Convex Finance provides additional rewards for Curve token holders and Curve liquidity providers through CRV token ownership and Curve liquidity. In addition, it provides incentivizes Curve staking.

Convex token (CVX) is a utility token used to receive a share of platform fees. A convex token is one that is earned when you use the Convex Platform, and it can be redeemed for goods or services. The CVX objective is to provide transparency and increased liquidity for holders by providing access to goods at lower prices in real time.

There are many projects that do this already too, but they’re often

There are really only 2 people involved in Convex:

Convex is focused on CRV token holders. If you hold CVX CRV tokens, Convex lets you stake them to cvxCRV.
Curve liquidity providers. If you hold Curve LP tokens, Convex lets you stake them and maximize returns.

More details on the project can be found at Convex Finance website.

Is Convex Finance Sharia Compliant?

Convex is a platform that boosts rewards for CRV stakers and liquidity providers. Convex are supporting Curve platform which is involved in lending activity. This type of activity is classed as non-Shariah-compliant. CVX cryptocurrency is not regulated by any country or Islamic regulatory authority that we are aware of.

Is CVX a genuine cryptocurrency on Blockchain?

Convex Finance has a legitimate product on the blockchain and a public roadmap showing its development plans. This gives us the confidence to confirm that CVX has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings. Therefore, as a project it has legitimacy.

Does CVX Project Adhere to Shariah Rulings?

No, CVX: Convex Finance as a project does not adhere to shariah gudelines. Convex platform boosts rewards for CRV stakers and liquidity providers, which involves lending and borrowing activity that are against Islamic guidelines and therefore Convex as a project itself is considered haram.

Does Convex Financials Stand up to Islamic Guidelines?

The CVX token is not backed by any equity, so there is no financial screening on this Convex. Therefore, in terms of its financials, yes, Convex does comply with Islamic guidelines.

Do CVX Tokenomics Comply with Islamic Finances?

The Convex Token (CVX), which entitles users to all services of the Convex platform, will also comprise a major component of the ecosystem via its usage within rebates from third party merchants on products purchased through their e-commerce channel. The CVX will continue to grow as more retailers join the ecosystem and use of COSY Coin technology across different platforms will generate further demand for CVX tokens in addition to incentivising customers through discounts given on any purchases made using CVX between participating retailers’ websites.

Additionally, rebates are paid out continuously into COSY Coin wallets by participating retailers with each transaction creating greater value for every participant including customers and merchants alike; thus strengthening COSY Coin’s position within the ecosystem as a beneficial tool capable of increasing adoption values not just among existing but new participants spurring additional growth amongst stakeholders across all associated partners involved in this project – both existing and future.

Result: A convex token allows you earn money if you buy stuff from them, so your cryptocurrency has value too! But, is it halal? I think you already know the answer, but lets do a fair objective assesment.

No, Convex tokens do not comply with Islamic Finalcial ruilings. The CVX token will be rewarded for CRV stakers. CVX is the native token for Convex Finance. Convex Finance is directly being used for boosting rewards for CRV stakers. CVX has a relation with Curve platforms which are involved in lending activity that contradict with Islamic Financial rules.

Is staking CVX/ Convex halal?

No, staking reward involves lending fees which do not comply with Shariah rulings and is therefore not permissable.

It does not matter how large or small your stake in a Curve pool is, as long as you have Curve LP tokens, Convex usually lets you get the maximum reward boost out of them. Some are sitting at 1.89 times, while others are solid at 2.5 times, all from haram activities.

What does the Muslim Crypto Community think of CVX?

Sharlife considers CVX: Convex Finance as a haram cryptocurrency based on three of the five areas reviewed, as we detail above. If you know of other academic or scholarly views please add in comments and we will update accordingly.