Orca
ORCA#191Orca is a decentralized exchange on Solana; ORCA is its governance token, and staked ORCA shares in trading fees.
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 Orca?8 Shariah criteria
8 pass · 0 caution · 0 failORCA pays no interest: staked ORCA shares variable swap fee income.
Riba is interest or any guaranteed increase on a loan. Holding ORCA pays nothing. Staking it for xORCA gives a share of protocol fees from real trades: 40% of those fees purchase ORCA for the staking vault. The return is variable, depends on trading volume and is not a loan; CryptoUmmah likens it to mudarabah, a profit-sharing partnership. Sharlife rates Orca permissible. No interest mechanism was found, so the criterion is at the maximum.
ORCA is the governance token of a working exchange.
This criterion asks whether the asset has real value as property (mal). ORCA gives votes in the Orca DAO and a claim, through staking, on a share of fees from an exchange with about $315.6 million locked. Sharlife rates Orca permissible, and no coin-specific defect in the nature of the token was found, so the criterion is at the maximum.
ORCA is a governance token of a spot exchange, not a game of chance.
Maysir is gambling: gaining or losing by chance rather than through productive exchange. ORCA has no gambling mechanics, and Orca pools settle spot swaps at once. No concrete problem was found, so the criterion is at the maximum.
The protocol earns swap fees for a trading service.
This criterion asks how the issuer or protocol earns and whether that income is impermissible. Orca takes 13% of swap fees: 12% for the DAO treasury and 1% for a Climate Fund; the rest goes to liquidity providers. CryptoUmmah finds that income comes entirely from swap trading fees and not from interest. No impermissible income was found, so the criterion is at the maximum.
Founders and fee rules are public, but financial disclosures and audit details are thin.
Gharar is excessive uncertainty or hidden information. The founders are named, the fee split and supply are documented and governance votes are public. But CryptoUmmah notes a 'near-absence of current protocol-level financial disclosures', the documentation says the contracts are audited without naming auditors on that page, and CoinMarketCap shows a CertiK rating of 4.4 (the page does not state the scale). The criterion is at pass, below the maximum.
Orca is used for spot swaps and liquidity provision, but its pools trade any token.
This criterion looks at what the asset and its protocol are actually used for. Orca activity is spot swaps and liquidity provision, which are permissible. Anyone can create a pool, so some fee income comes from uncertain or speculative token pairs; CryptoUmmah calls this indirect gharar 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 ORCA is widely available and can be held in self-custody.
This criterion asks whether the asset can be owned in a permissible way. ORCA trades spot with full payment and delivery on exchanges and on Solana, and can be held in a self-custody wallet as an SPL token. The criterion is at the maximum.
Orca provides non-custodial trading on Solana; no current harm to holders was found.
Maslahah weighs benefit against harm. Orca gives Solana users non-custodial swaps and gives 1% of fees to a Climate Fund, which donated $550,000 to Ocean Conservancy in 2022. 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 ORCA with full payment and immediate delivery is available on exchanges and on Solana, and the tokens can be moved to a self-custody wallet. Sharlife lists Orca as permissible.
No exchange-traded fund or product holding ORCA was found in the sources collected. A product that held ORCA itself would be judged like spot; its structure would need checking.
ORCA is a governance token and is not used as a means of payment.
ORCA secures no network. Staking ORCA for xORCA shares variable swap fee income (40% of protocol fees purchase ORCA for the vault), which is profit sharing and not interest. CryptoUmmah says the contract classification is still partly contested, and unstaking takes 7 days.
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 ORCA through exchange or DeFi lending programmes pays depositors interest from borrowers. This is riba.
Providing liquidity to Orca pools earns swap fees from real trades, which is not interest, but the result depends on the token pair and carries price risk; pairs with impermissible tokens should be avoided. Yield products on ORCA built on lending or leverage 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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