Fluid
FLUID#178FLUID (formerly Instadapp, INST) is the governance token of Fluid, a DeFi protocol that combines interest-based lending, borrowing vaults and a DEX.
Does not clear all 8 Shariah criteria. Needs caution: interest (riba), nature of the asset, and benefit and harm (maslahah). Fails: business model and usage.
- 3 pass
- 3 caution
- 2 fail
Verdict history
- DoubtfulCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold Fluid?8 Shariah criteria
3 pass · 3 caution · 2 failHolding FLUID pays no interest, but the protocol earns from interest on loans and has used that revenue to repurchase FLUID.
Riba is interest or any guaranteed increase on a loan. FLUID is a governance token: it has no staking reward and holders receive no share of interest directly. But the value that reaches holders comes from interest. Fluid's revenue is the protocol's cut of borrowers' interest and of DEX fees earned on the same lending liquidity, and the team proposed using revenue for FLUID buybacks; about 1.3% of supply was repurchased before buybacks were halted in May 2026. Sharlife, the authoritative source, lists Fluid as Grey, and CryptoUmmah calls riba dominant.
Because holders get no direct interest payment and buybacks are paused, the status is caution at the bottom of the band and not fail.
FLUID is a real governance token, but what it governs is an interest-based lending protocol.
This criterion asks whether the asset has real value as property (mal). FLUID gives real control: holders vote on markets, incentives and the treasury, and the team says the protocol has no equity behind it. The concern is specific to this coin: its value derives from governing and benefiting from a business built on interest. Sharlife lists it as Grey for that reason, so the status is caution.
FLUID has no chance-based mechanics.
Maysir is gambling: gaining or losing by chance rather than through productive exchange. FLUID has no lottery or betting feature; it is a governance token. Leverage taken by users of the protocol is judged under usage. No concrete gambling problem with the token is documented, so the criterion is at the maximum.
The protocol's core income is its share of interest paid by borrowers.
This criterion asks how the protocol earns. Fluid's docs describe its foundation as a lending layer: users deposit to earn, borrowers take loans against collateral, and the protocol keeps a share. The team reported a revenue run rate above $10 million with Fluid among the top four lending markets on Ethereum. The DEX adds swap fees, which are permissible in themselves, but it runs on the same lending liquidity, and no breakdown shows interest below the 5% threshold. With interest-based lending as the core business, documented in the project's own sources, the criterion fails.
Tokens are fully vested and governance is open, but the 2026 Resolv incident left about $21 million of bad debt and audit evidence is disputed.
Gharar is excessive uncertainty or hidden information. Supply is capped, the team says all tokens have vested, and treasury decisions are debated on a public forum. Two concrete points lower the score within pass: Fluid incurred about $21 million of bad debt in the Resolv incident, of which the DAO treasury covers about $8.2 million, and CryptoUmmah says it could not locate a named audit report for the contracts.
Fluid is used mainly to lend and borrow at interest and to trade on that leveraged liquidity.
This criterion looks at what the protocol is actually used for. Fluid exists to let users lend at interest and borrow against collateral at up to 95% loan-to-value; DefiLlama showed about $760 million borrowed against about $976 million deposited on 2 October 2026. Its DEX uses the same collateral and debt. Interest-based lending is the main purpose, as the project's own docs describe, so the criterion fails.
Fully paid spot FLUID is available on exchanges and can be self-custodied.
This criterion asks whether the asset can be owned in a permissible way. FLUID trades spot on Upbit, Bybit and Coinbase and is an ERC-20 token that can be held in a self-custody wallet. The criterion is at the maximum.
Fluid gives efficient access to liquidity, but through interest-bearing debt and leverage, and users were exposed to a $21 million bad-debt event.
Maslahah weighs benefit against harm. Fluid offers efficient trading and access to liquidity without intermediaries. But the benefit is delivered through interest-bearing debt and high leverage, and the 2026 Resolv incident created about $21 million of bad debt that had to be covered by Resolv, the treasury and the team. These concrete harms keep the status at caution.
How you can use it
Tap a card for the ruling and sourcesBuying FLUID with full payment and immediate delivery is available on exchanges, and the tokens can be held in self-custody.
No exchange-traded fund or product holding FLUID was found in the sources collected. A product that held FLUID would be judged like spot; its structure would need checking.
FLUID is a governance token and is not used as a means of payment. Tier-1 bodies such as Indonesia's MUI reject crypto as general currency.
FLUID has no native staking that secures a network. Products advertised as FLUID staking, and liquidity incentives on Fluid, pay from protocol revenue or emissions tied to interest-based lending and 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.
Depositing assets in Fluid to earn, or lending FLUID through exchange or DeFi programmes, pays interest from borrowers. This is riba.
Yield on Fluid comes from interest paid by borrowers, including smart collateral and smart debt positions. This is riba.
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
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