Convex Finance
CVX#138CVX is the token of Convex Finance, which boosts Curve liquidity rewards and pools voting power over Curve emissions.
Does not clear all 8 Shariah criteria. Needs caution: interest (riba), nature of the asset, business model, excessive uncertainty (gharar), and usage.
- 3 pass
- 5 caution
- 0 fail
Verdict history
- DoubtfulCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold Convex Finance?8 Shariah criteria
3 pass · 5 caution · 0 failStaking rewards are mostly CRV emissions and trading fees, but include crvUSD platform fees funded by borrower interest.
Riba is interest or any guaranteed increase on a loan. Convex does not lend, and most staker rewards are a share of CRV emissions and Curve trading fees. But Convex docs say cvxCRV stakers earn crvUSD platform fees, which come from interest paid by crvUSD borrowers, and CVX stakers are paid in cvxCRV. CryptoUmmah adds that Curve pools may contain interest-bearing stablecoins. Interest income is proven but its share is unknown, so the criterion is at caution. Sharlife, the first authoritative source that rates Convex Finance, marks it not compliant.
CVX gives real governance power over Curve emissions, but its value rests on a yield layer partly fed by interest.
Mal is property that Islamic law recognises as having value. CVX, when locked, directs votes over Curve gauge weights and earns a share of fees, a real function. Sharlife, the first authoritative source that rates Convex Finance, marks it not compliant; a coin-specific reason is that its value comes from capturing yield that partly includes interest-based crvUSD fees. The criterion is at caution.
CVX has no chance-based payout; its rewards come from fees and emissions.
Maysir is gambling: gaining or losing by chance rather than through productive exchange. CVX has no lottery-like feature, and rewards are shares of fees and emissions. No concrete gambling mechanism was found, so the criterion is at the maximum.
Convex earns a 17% cut of Curve rewards; part of the income it distributes comes from crvUSD borrower interest.
This criterion asks how the protocol earns. Convex takes 17% of the CRV rewards earned by Curve LPs on the platform and distributes most of it to stakers. Curve trading fees are permissible, but Convex also passes on crvUSD platform fees, which are interest from borrowers, and FXS emissions from Frax pools. Impermissible income is proven but its share is unknown, so the criterion is at caution. Sharlife's 'No' is consistent with this.
The team is anonymous, no named audits were found, and converting CRV to cvxCRV is irreversible.
Gharar is excessive uncertainty or hidden information. CVX supply rules are published (100 million maximum, minted with CRV claims). But CryptoUmmah notes that the founders are unidentified, no named audits were disclosed, and converting CRV to cvxCRV cannot be undone except by selling on secondary markets; rewards also mix many pool sources. These are concrete uncertainties, so the criterion is at caution.
CVX is used to vote on Curve emissions and earn fees, mainly from exchange liquidity but partly from interest.
This criterion looks at what the asset is actually used for. CVX is locked to vote on Curve gauge weights and staked for fee shares, supporting liquidity on Curve, a permissible exchange service. Part of what it governs and earns, crvUSD fees and some interest-bearing pools, is interest-based, so the criterion is at caution.
Fully paid spot CVX is available and can be held in a self-custody wallet.
This criterion asks whether the asset can be owned in a permissible way. CVX trades spot with full payment and delivery on exchanges and is an ordinary ERC-20 token that can be held in self-custody. Ownership does not depend on derivatives or leverage, so the criterion is at the maximum.
No concrete fraud or hack involving CVX is documented.
Maslahah weighs benefit against harm. Convex supports liquidity on Curve, and no source collected documents fraud or a hack involving CVX holders. Interest exposure is counted under other criteria, so the criterion is at the maximum.
How you can use it
Tap a card for the ruling and sourcesBuying CVX with full payment and immediate delivery is available, and the tokens can be moved to a self-custody wallet. Spot is acceptable for a DOUBTFUL asset for those who follow the permissive view, but part of Convex income comes from interest.
No CVX exchange-traded fund was found. A product that holds CVX itself would be judged like spot; its structure would need to be checked.
CVX is a governance and staking token, not a means of payment. Tier-1 bodies such as Indonesia's MUI rule that using cryptocurrency as currency is not permissible.
Locking CVX as vlCVX earns a share of Convex fees, partly from Curve trading fees and partly from crvUSD interest. It is not validation work; purification of the interest part would be needed.
Margin trading in CVX is offered by some exchanges but is never acceptable: it is a deferred exchange with borrowed money and leverage (AAOIFI SS 20).
CVX futures and perpetuals are offered by derivatives exchanges, but futures, perpetuals and options always fail under AAOIFI SS 20: deferred exchange without delivery, usually with leverage.
Lending CVX through exchange or DeFi lending programmes pays depositors interest from borrowers. This is riba.
Yield products built on CVX or cvxCRV that add lending or pass on crvUSD interest get part of their return from interest and fail.
Scholars quotes
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.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.Our current position is 'tawaquf'; we can't say it is halal or haram, but we say it is better not to engage in itAs 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.AI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
Section in preparation
Similar halal assets
Halal verdict, same category
