1inch
1INCH#1691inch is a DEX aggregator that finds the best swap rates across many exchanges; 1INCH is its governance and staking token.
- Market cap
- $143.96M
- Volume 24h
- $9.8M
- All-time high
- —
- Circulating supply
- 1.41B of 1.5B
Passes our 8 Shariah criteria. Needs caution: interest (riba), business model, and usage.
- 5 pass
- 3 caution
- 0 fail
Verdict history
- HalalCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold 1inch?8 Shariah criteria
5 pass · 3 caution · 0 failLocking 1INCH and delegating its voting power earns passive rewards paid by resolvers.
Riba is interest or any guaranteed increase on a loan. Holding 1INCH pays nothing. But a staker who locks 1INCH for up to 2 years and delegates Unicorn Power to a resolver receives rewards that accrue every block, without doing any work, and with no slashing. The rate is variable and it is not a loan, but a passive return for locking tokens is close to riba in form. With Sharlife rating 1inch not permissible, the criterion is at caution.
1INCH is the governance token of a working swap aggregator.
This criterion asks whether the asset has real value as property (mal). 1INCH gives votes in 1inch Network governance and access to resolver delegation in a protocol with large real usage. Sharlife lists it as not permissible without public reasons, and no coin-specific defect in the nature of the token was found, so the criterion is at the maximum.
1INCH is a governance token, not a game of chance.
Maysir is gambling: gaining or losing by chance rather than through productive exchange. 1INCH has no gambling mechanics, and 1inch is a spot swap router. No concrete problem was found, so the criterion is at the maximum.
Swap fees are permissible income, but the card page advertises borrowing with crypto and the blog promotes looped lending positions.
This criterion asks how the issuer or ecosystem earns and whether that income is impermissible. CryptoUmmah finds that revenue comes from swap fees tied to real transactions, not interest. But the 1inch Card page carries the tagline 'Borrow with crypto' without describing any terms, and the 1inch blog presents looped positions on Aave, a lending protocol, as a use of Aqua. The share of income from these is not disclosed, so the criterion is at caution.
Founders are public and code is open, but audit documentation is thin.
Gharar is excessive uncertainty or hidden information. The founders are named, the code is open-source and supply is capped at 1.5 billion with about 94% circulating. CryptoUmmah scores audit quality 55/100 for insufficiently specific documentation, and CoinMarketCap shows a CertiK rating of 4.6/10. The criterion is at pass, below the maximum.
1inch is used mainly for spot swaps, but routes and products also reach lending and leveraged positions.
This criterion looks at what the asset and its protocol are actually used for. Most 1inch activity is spot token swaps, which are permissible. CryptoUmmah notes that some routed liquidity may involve interest-bearing instruments, and 1inch promotes looped lending positions and its card page advertises borrowing. These concrete uses put the criterion at caution.
Fully paid spot 1INCH is widely available and can be held in self-custody.
This criterion asks whether the asset can be owned in a permissible way. 1INCH 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.
1inch gives users better swap prices and self-custody tools; no current harm to holders was found.
Maslahah weighs benefit against harm. 1inch helps users get better prices across exchanges without giving up custody, and reports over 28 million connected wallets. 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 1INCH with full payment and immediate delivery is widely available on exchanges, and the tokens can be moved to a self-custody wallet. Note that Sharlife lists 1inch as not permissible.
No exchange-traded fund or product holding 1INCH was found in the sources collected. A product that held 1INCH would be judged like spot; its structure would need checking.
1INCH is a governance token and is not used as a means of payment.
1INCH secures no network. Locking 1INCH gives voting power; delegating it to resolvers pays passive rewards with a lock of up to 2 years. Voting is acceptable; the passive delegation reward should be avoided or 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 1INCH through exchange or DeFi lending programmes pays depositors interest from borrowers. This is riba.
Yield products on 1INCH, and looped lending positions offered through 1inch products, get their return from lending or leverage 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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