0x Protocol
ZRX#1960x is open-source infrastructure for swapping tokens on decentralized exchanges; ZRX is its governance and staking token.
- Market cap
- $103.34M
- Volume 24h
- $4.25M
- All-time high
- —
- Circulating supply
- 848.4M of 1B
Passes all 8 Shariah criteria.
- 8 pass
- 0 caution
- 0 fail
Verdict history
- HalalCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold 0x Protocol?8 Shariah criteria
8 pass · 0 caution · 0 failZRX pays no interest: staking rewards come from trading fees, and that fee is currently zero.
Riba is interest or any guaranteed increase on a loan. ZRX is not lent and pays no fixed return. Its staking design shares protocol fees from real trades with market makers and their stakers, which CryptoUmmah describes as a fee for a service (wakalah or ujrah), variable and not guaranteed. The protocol fee has been zero since September 2021, so there is no reward at all today. Sharlife rates 0x Protocol permissible. No interest mechanism was found, so the criterion is at the maximum.
ZRX is the governance and staking token of working exchange infrastructure.
This criterion asks whether the asset has real value as property (mal). ZRX gives governance rights over an open protocol that has settled more than $200 billion in trades. Sharlife rates 0x Protocol permissible, and no coin-specific defect in the nature of the token was found, so the criterion is at the maximum.
ZRX is a governance token, not a game of chance.
Maysir is gambling: gaining or losing by chance rather than through productive exchange. ZRX has no gambling mechanics, and 0x is infrastructure for spot swaps with immediate settlement. No concrete problem was found, so the criterion is at the maximum.
Income in the 0x ecosystem comes from service fees, not interest.
This criterion asks how the issuer or ecosystem earns and whether that income is impermissible. The on-chain protocol currently charges no fee. The 0x company sells API access under pricing tiers. CryptoUmmah finds that the protocol fee model is a fee charged for a defined service and not an interest-bearing mechanism. No impermissible income was found, so the criterion is at the maximum.
Founders are public and code is open, but audit documentation is thin and governance has been quiet.
Gharar is excessive uncertainty or hidden information. The founders are named, the code is open-source and supply is capped at 1 billion with about 85% circulating. But CryptoUmmah scores audit quality 40/100 because it could not confirm audit firms, dates or findings, and the governance forum shows no vote for over two years. The criterion is at pass, below the maximum.
0x is used for spot token swaps, but it routes trades in any token.
This criterion looks at what the asset and its protocol are actually used for. 0x activity is spot token swaps through wallets and apps, which are permissible. CryptoUmmah notes that the exchange ecosystem the protocol serves will carry some trades in impermissible tokens or strategies, and asks for purification of 1.0 to 1.5% of profits. This concrete point keeps the criterion at pass, below the maximum.
Fully paid spot ZRX is widely available and can be held in self-custody.
This criterion asks whether the asset can be owned in a permissible way. ZRX trades spot with full payment and delivery on major exchanges and can be held in self-custody as an ERC-20 token. The criterion is at the maximum.
0x gives users non-custodial trading; no current harm to holders was found.
Maslahah weighs benefit against harm. 0x lets people swap tokens without giving up custody and reports more than 14 million unique wallets served. No fraud by the project was found in the sources collected, so the criterion is at the maximum.
How you can use it
Tap a card for the ruling and sourcesBuying ZRX with full payment and immediate delivery is widely available on exchanges, and the tokens can be moved to a self-custody wallet. Sharlife lists 0x Protocol as permissible.
No exchange-traded fund or product holding ZRX was found in the sources collected. A product that held ZRX itself would be judged like spot; its structure would need checking.
ZRX is a governance token and is not used as a means of payment.
ZRX secures no network. Staking ZRX with a market maker shares protocol fees from real trades, which is a fee for a service and not interest, but the fee has been zero since September 2021 and holders have reported trouble unstaking. Any third-party "staking" product that pays a return must be checked.
Margin trading is never acceptable: it is a deferred exchange with borrowed money and leverage (AAOIFI SS 20).
Futures, perpetuals and options always fail under AAOIFI SS 20: deferred exchange without delivery, usually with leverage.
Lending ZRX through exchange or DeFi lending programmes pays depositors interest from borrowers. This is riba.
ZRX pays holders nothing itself. Yield products on ZRX get their return from lending or similar interest-like sources and fail.
Scholars quotes
The opinion on this is the same as doing the same with any halal assets such as shares – 1) is permissible, 2) is more debatable and there are differing opinions on short-term trading.As I mentioned at the beginning of this article it is not necessary to substantiate the permissibility of something as long as there are no prohibited factors involved in it or surrounding it.Penggunaan cryptocurrency sebagai mata uang hukumnya haram, karena mengandung gharar (ketidakjelasan), dharar (bahaya) dan bertentangan dengan Undang-Undang nomor 7 tahun 2011 tentang Mata Uang dan Peraturan Bank Indonesia nomor 17 tahun 2015 tentang Kewajiban Penggunaan Rupiah di Wilayah Negara Kesatuan Republik Indonesia.Sebagaimana mata wang yang lain, mata wang digital hendaklah tidak digunakan sebagai bayaran kepada barangan, perkhidmatan dan aktiviti tidak patuh Syariah seperti pembelian dadah, pelacuran, perjudian dan pendanaan aktiviti keganasan serta penggubahan wang haram.The SAC has also resolved that investment and trading of Digital Assets that fulfil the above requirements and which are traded on Digital Asset Exchange (DAX) registered with SC are permissible.Third: In light of the above and given the significant risks associated with this type of currencies and the instability of their transactions, the Council of the Academy recommends pursuing research and studies on issues affecting its ruling.Bitcoin is a digital currency that does not meet the legal and Sharia criteria that make it a currency subject to the rulings of dealing with official legal currencies recognized internationally.بناءً على ذلك: فلا يجوز شرعًا تداول عملة "البتكوين" والتعامل من خلالها بالبيعِ والشراءِ والإجارةِ وغيرها، بل يُمنع من الاشتراكِ فيها؛ لعدمِ اعتبارِها كوسيطٍ مقبولٍ للتبادلِ من الجهاتِ المخُتصَّةِ، ولِمَا تشتمل عليه من الضررِ الناشئ عن الغررِ والجهالةِ والغشِّ في مَصْرِفها ومِعْيارها وقِيمتها، فضلًا عما تؤدي إليه ممارستُها من مخاطرَ عاليةٍ على الأفراد والدول.According to research and opinion of experts so far, cryptocurrency is not considered ‘ maal ’ (wealth) in Sharia.Muhammadiyah memandang transaksi dan investasi kripto pada dasarnya mubah (boleh) tetapi dengan syarat tertentu.Our current position is 'tawaquf'; we can't say it is halal or haram, but we say it is better not to engage in itAI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
Section in preparation
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