Evaluating the Permissibility of Crypto Apps Offering APYs: A Shariah Perspective #

Original Question: Are crypto currency apps that pay out APYs based in the currency of your choice allowed? The app itself guarantees 6% APY for staking on their platform.

Answer from Aziz Zainuddin: We need to understand first where the yield is coming from.

On Celcius, it has a borrowing feature, meaning it operates on money markets.

Thus their APY is based on on money markets which is effectively riba, thus should be avoided.

Due to its impermissibility, you will have to donate it to charity and source for alternative investments complying with Shariah