Pendle
PENDLE#98Pendle is a DeFi protocol that splits yield-bearing assets into principal and yield tokens that can be traded; PENDLE is its staking and governance token.
- Market cap
- $412.86M
- Volume 24h
- $39.42M
- All-time high
- —
- Circulating supply
- 173.63M
Does not clear all 8 Shariah criteria. Needs caution: interest (riba), gambling (maysir), business model, and excessive uncertainty (gharar).
- 4 pass
- 4 caution
- 0 fail
Verdict history
- DoubtfulCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold Pendle?8 Shariah criteria
4 pass · 4 caution · 0 failsPENDLE rewards are funded from fees on yields, and many of those yields are interest from lending or savings products.
Riba is interest or any guaranteed increase on a loan. PENDLE itself pays no interest, but staked PENDLE receives PENDLE repurchased with 80% of protocol fees, and the largest fee is 5% of all yield earned by YT. On 1 October 2026 most active Pendle markets were built on yield-bearing stablecoins and vaults such as sUSDS and superUSDC, whose yield is a savings or lending rate. So interest-derived income clearly reaches sPENDLE holders, but its share is not published. Sharlife's Grey status points to the same doubt.
PENDLE is the working governance and staking token of a large live protocol.
This criterion asks whether the asset has real value as property (mal). PENDLE is used to vote on Pendle proposals, to stake as sPENDLE and as liquidity incentives in a protocol with about $1.27 billion locked. No coin-specific defect such as an empty or purely symbolic token is documented, so the criterion is at the maximum; the general scholarly debate about crypto is reflected in confidence.
YT is a leveraged bet on future yield and points, and Boros offers margined funding-rate trading with liquidations.
Maysir is gambling: gaining or losing by chance rather than through productive exchange. Holding PENDLE is not gambling, but the protocol's fees come partly from speculative products. A YT goes to zero at maturity and pays only if yield or points turn out high enough, which works like a leveraged wager. Boros lets users take margined positions on funding rates of perpetual futures, which can be liquidated. These are concrete features of Pendle, so the criterion is in caution.
Pendle earns fees from trading tokenised yields, largely from interest-bearing assets, and from Boros funding-rate trading.
This criterion asks how the protocol earns and whether any of it is impermissible. Pendle takes 5% of YT yield and a swap fee on PT trades; 80% of the fees it keeps fund PENDLE repurchases for sPENDLE holders. Its main markets tokenise stablecoin savings rates and lending-vault yields, and PT works like a discounted claim on such interest. Boros adds income from leveraged derivatives on funding rates. A substantial part of revenue is therefore tied to interest and leverage, though the exact share is not published, so the criterion is in caution rather than fail.
PT and YT trade a future, uncertain stream of yield; contracts are complex and parameters can change by governance.
Gharar is excessive uncertainty or hidden information. Pendle's rules and contracts are public and audited, but its core product sells a future yield that does not yet exist and whose size is unknown, and YT holders also trade expected airdrop points. Emissions and fee rules can be changed by governance, as the January 2026 switch from vePENDLE to sPENDLE showed. These are concrete sources of contractual uncertainty, so the criterion is in caution.
PENDLE is used for governance, staking and liquidity incentives; the protocol it governs serves yield trading.
This criterion looks at what the asset is actually used for. PENDLE is used to vote on proposals, to stake for a share of repurchased tokens and as incentives for liquidity pools. These uses are not impermissible in themselves; the score is slightly reduced because the token's purpose is to steer a protocol whose markets are largely interest-based, which is weighed fully under business model.
Fully paid spot PENDLE is widely available and can be held in a self-custody wallet.
This criterion asks whether the asset can be owned in a permissible way. PENDLE is an ERC-20 token listed on major spot exchanges and DEXs and can be held in a self-custody wallet. Ownership does not depend on derivatives or leverage, so the criterion is at the maximum.
Pendle offers fixed-rate tools and hedging, but also leveraged speculation on yields and funding rates.
Maslahah weighs benefit against harm. Pendle gives users a way to fix a return or hedge changing yields, its code is open and audited, and no major exploit of Pendle's own contracts is documented in the sources used. The score is slightly reduced because YT and Boros encourage leveraged speculation.
How you can use it
Tap a card for the ruling and sourcesBuying PENDLE with full payment and immediate delivery is widely 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 the protocol's fee income is partly tied to interest.
No PENDLE exchange-traded fund was found as of 1 October 2026. A product that holds PENDLE itself and does not lend it would be judged like spot; its structure would need to be checked.
PENDLE 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.
sPENDLE pays no validation reward: holders receive PENDLE repurchased with protocol fees, which come largely from yields of interest-bearing assets. The doubtful part of that income would need to be purified.
Margin trading in PENDLE is offered by some exchanges but is never acceptable: it is a deferred exchange with borrowed money and leverage (AAOIFI SS 20).
PENDLE 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 PENDLE through exchange or DeFi lending programmes pays depositors interest from borrowers. This is riba.
Pendle PT on lending or savings assets locks in a fixed return from interest, and YT collects that interest; yield products on PENDLE itself get their return from lending. These 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
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