Defi, Yield Farming, Staking & Liquidity Mining | Islamic Perspective? — Transcript

Full transcript

1. 0:00you know this crypto staking stuff is
2. 0:01really interesting i'm actually getting
3. 0:03into it crypto staking sounds pretty
4. 0:06horror movie to me man
5. 0:08listen listen just make sure that no one
6. 0:10bites your neck no i'm talking about
7. 0:12crypto you know like bitcoin ethereum ah
8. 0:16stay away bruv it's all haram and full
9. 0:18of scams that's what i've heard no not
10. 0:20necessarily not if you navigate this
11. 0:22space carefully you know vampires
12. 0:25die if you stake them with a cross
13. 0:28well who else doesn't like crosses
14. 0:30muslims
15. 0:31so doesn't that make you think vampires
16. 0:34are actually
17. 0:35possibly muslims they just get bad press
18. 0:38islamophobia
19. 0:42welcome back folks yield farming
20. 0:44liquidity mining crypto stake and defy
21. 0:47are buzzwords that are rocking the
22. 0:49crypto scene right now and right now
23. 0:51there is serious money being made in
24. 0:53this space as well in fact we previously
25. 0:55did an interview with abdul malik and
26. 0:57andrey kim who have built this
27. 0:59incredible multi-billion dollar business
28. 1:01that now accounts for approximately five
29. 1:04percent of all of the bitcoin mining
30. 1:07power in the world but what on earth is
31. 1:10all this stuff and is it halal and if it
32. 1:12is halal how can you and i get involved
33. 1:14in the action i'm going to dive into all
34. 1:16of this in this video inshallah and
35. 1:18somewhere in the middle of this video
36. 1:19i'm going to reveal which of the four
37. 1:20different strategies we're discussing
38. 1:22today i have kicked off with and what
39. 1:24i've invested in and i'd love to hear
40. 1:26your thoughts about my investing
41. 1:27decision in the comments below this is a
42. 1:30long video but if you're serious about
43. 1:32crypto and knowing if it's halal or not
44. 1:34then you need to know this stuff before
45. 1:35we begin islamic finance guru ifg for
46. 1:37short is a halal investment and personal
47. 1:40finance platform where we analyze review
48. 1:42and compare all the latest and greatest
49. 1:44financial products coming out of the
50. 1:46islamic finance world our mission is
51. 1:48really simple we want to help muslims
52. 1:50everywhere get wealthier and put their
53. 1:53money to work if that sounds like it's
54. 1:55up your street then please do like this
55. 1:58video please subscribe to the channel
56. 2:00please share this with your friends and
57. 2:02your family everywhere and if you'd like
58. 2:04to chat with me or tens of thousands of
59. 2:06like-minded others then we've got a
60. 2:07really good crypto telegram group the
61. 2:10link is in the description below see you
62. 2:12there oh and you should remember that
63. 2:14you know these videos are not financial
64. 2:16advice they are made for education and
65. 2:19entertainment purposes only i am not
66. 2:22your financial advisor if you're going
67. 2:23to be making any decisions about your
68. 2:25personal finances and investment then
69. 2:27make sure that you think those through
70. 2:29carefully and if you can afford it talk
71. 2:31to a financial advisor as well
72. 2:34in a nutshell you can earn a fixed yield
73. 2:37on your cryptocurrency through a variety
74. 2:39of means these include yield farming
75. 2:42crypto mining crypto staking and
76. 2:45decentralized finance which involves
77. 2:47lending out cryptocurrencies and a few
78. 2:50other activities unfortunately the
79. 2:52information on the internet is not
80. 2:53simple and as clear as one would like
81. 2:56and there's definitely no islamic
82. 2:57analysis being done in the majority of
83. 3:00venues online for people who don't care
84. 3:02about shure compliance these four
85. 3:03strategies are largely the same because
86. 3:05they give you a fixed return the only
87. 3:07thing that defers is their risk profiles
88. 3:10and that's the only thing they kind of
89. 3:11cover in their analysis this
90. 3:13unfortunately means that they will often
91. 3:15lump together the analysis that a muslim
92. 3:17would want a bit more granularity on and
93. 3:19they wouldn't focus on those things that
94. 3:22allow us to determine if something is
95. 3:23haram or halal a muslim should therefore
96. 3:26be fully alert then there is no fixed
97. 3:28definition of these terms right now and
98. 3:31even the largest crypto players and
99. 3:33platforms sometimes use these terms
100. 3:36interchangeably so you need to be wary
101. 3:38of that really really high level though
102. 3:40this is an understanding of what these
103. 3:42terms generally mean yield farming is a
104. 3:45high level term that means you park your
105. 3:46crypto somewhere and you get a fixed
106. 3:48return this can come in various
107. 3:50different flavors but usually involves
108. 3:52liquidity mining liquidity mining is
109. 3:55therefore a subset of yield farming and
110. 3:58that is where you are parking your money
111. 4:00into some kind of platform to give them
112. 4:03liquidity so that the platform can
113. 4:05function and they give you a fixed
114. 4:06return because of that benefit this is
115. 4:10not to be confused with crypto mining
116. 4:12this is plain old mining for
117. 4:15cryptocurrencies where you provide data
118. 4:17processing and computer power in order
119. 4:19for the blockchain to function this is
120. 4:22the kind of stuff that andrea came and
121. 4:23abdulmalik were involved in where they
122. 4:25were mining cryptocurrency itself crypto
123. 4:27staking is where you are investing in a
124. 4:30cryptocurrency that is built upon a
125. 4:31proof of stake model sidebar
126. 4:34cryptocurrencies need ways to issue new
127. 4:36coins into the ecosystem one such way is
128. 4:39a proof of stake model and the idea
129. 4:41behind this is that those people who are
130. 4:44already holding this coin are randomly
131. 4:47allocated as the miners who then get
132. 4:50rewarded with these additional new coins
133. 4:53that are issued in other words you're
134. 4:54rewarded for holding on to these kind of
135. 4:57coins d5 is an umbrella term that is
136. 5:00applied to crypto projects that are
137. 5:02essentially removing the financial
138. 5:05middleman in lots of different
139. 5:07mainstream financial products that we're
140. 5:09involved in today so for example think a
141. 5:11broker is a middleman between the stock
142. 5:12market and you so crypto projects would
143. 5:15remove that and they come up with an
144. 5:17alternative similarly you have loans
145. 5:19insurance crowdfunding platforms
146. 5:21derivatives gambling and much much more
147. 5:25okay let's just set aside these terms
148. 5:27yield farming crypto staking mining d5
149. 5:30all of this stuff let's just set it
150. 5:31aside and actually look at what is
151. 5:33happening because that's where the syria
152. 5:35analysis applies first
153. 5:37you could be getting the money that you
154. 5:39get
155. 5:40because you have become
156. 5:42a broker of sort you get remunerated
157. 5:45because you are providing liquidity to
158. 5:47an automated market maker like uni swap
159. 5:50or pancake or others think of you acting
160. 5:53like aj bell or hargreaves lansdowne do
161. 5:56but for the stock market but without
162. 5:58actually requiring that aj bell or
163. 6:00hargreaves lands down humans involved at
164. 6:02all think for the first time if you
165. 6:04could just directly go to the stock
166. 6:06exchange and buy and sell with other
167. 6:08people through a contract that has
168. 6:10already been pre-determined that is what
169. 6:12is going on with an automated market
170. 6:14maker and you are being provided a small
171. 6:18cut from the profit share because you
172. 6:20have provided the liquidity to enable
173. 6:23that crypto service to be provided
174. 6:26second you could be remunerated for
175. 6:28being part of a proof of stake project
176. 6:32you get remunerated in a proof-of-stake
177. 6:33crypto project by holding those coins
178. 6:35and either being issued randomly those
179. 6:37new coins into your wallet or being
180. 6:39given the right to mine for those new
181. 6:41coins at a very low price thirdly you
182. 6:44could be getting money for lending your
183. 6:46cryptocurrency out you could be getting
184. 6:48remunerated by a broker such as binance
185. 6:51which lends your cryptocurrency off you
186. 6:53and then lends it out to other people at
187. 6:55a higher interest rate a bit like a bank
188. 6:57and that would obviously just pure
189. 6:59straight up interest fourthly you could
190. 7:01be getting remunerated for providing
191. 7:03liquidity to a d5 platform and they come
192. 7:05in various shapes and sizes
193. 7:08yield farming is the broadest of those
194. 7:10terms it could mean that you're getting
195. 7:12money for being part of a broker for
196. 7:14lending for being part of a d5 liquidity
197. 7:17mining usually means that you're getting
198. 7:19money for being part of a broker but it
199. 7:21could also mean sometimes other things
200. 7:24as well crypto staking usually means
201. 7:26being part of a proof of stake network
202. 7:29crypto lending usually means lending
203. 7:32your coins for interest d5 usually means
204. 7:35participating in a d5 project and
205. 7:37getting back either interest or
206. 7:40participating in the underlying activity
207. 7:42of the d5 project and getting a bit of a
208. 7:44profit share of that remember this is
209. 7:46not a fatwa and each crypto project is
210. 7:48different this is how we think about the
211. 7:50surety analysis on these crypto
212. 7:52investing strategies being part of a
213. 7:54broker and getting a profit share from
214. 7:56them would usually be fine so things
215. 7:59like uni swap and pancake swap would
216. 8:02usually be seen as permissible being
217. 8:04part of a proof of stake network is also
218. 8:07usually fine but does also depend on the
219. 8:10underlying nature of the coin itself and
220. 8:12it doesn't have any funky stuff going on
221. 8:14crypto lending of course is obviously
222. 8:16impermissible participating in a d5 and
223. 8:19getting paid interest is obviously also
224. 8:20impermissible but if you're getting a
225. 8:22profit share from the underlying
226. 8:24activities of the defy then it depends
227. 8:26on the underlying activities of the d5
228. 8:27right so if it's derivatives or gambling
229. 8:29then that would be impermissible but if
230. 8:31it's some kind of brokerage going on
231. 8:33then that could be permissible there are
232. 8:35now also some really interesting muslim
233. 8:37d5 projects coming about which i think
234. 8:39is really cool and i'm following them
235. 8:41very closely and please please do
236. 8:43remember that i have said generally so
237. 8:46much in this video because the crypto
238. 8:48landscape is evolving and even each
239. 8:51project can evolve very rapidly over the
240. 8:53course of a few weeks and months so
241. 8:54please do make sure that you look at the
242. 8:56coin and where you're buying it and how
243. 8:58you're buying it and what you're doing
244. 9:00with it at a granular level each time
245. 9:03that you make such an investment now i
246. 9:05did promise that i was going to tell you
247. 9:06what i've invested in so in my own
248. 9:08investing i've kicked off into these
249. 9:10strategies by staking some coins into
250. 9:13pancake but hang on brian you said that
251. 9:16staking is where you are part of the
252. 9:18proof-of-stake
253. 9:19project and here you've essentially used
254. 9:21it as liquidity mining
255. 9:23whoa
256. 9:24yeah i know this is a bit confusing this
257. 9:26is what i mean about all these terms
258. 9:28being thrown around and used differently
259. 9:29so binance actually puts its liquidity
260. 9:31mining offering in the section called
261. 9:33staking by the way you should use the
262. 9:35binance ifg referral link it is in the
263. 9:37description below it helps us produce
264. 9:40more of these videos for you that
265. 9:41hopefully are beneficial
266. 9:44so there you have it folks a delightful
267. 9:46run through of all the crypto jargon
268. 9:49that is being talked about right now i'd
269. 9:51love to hear from you what would you
270. 9:52like us to cover in our future videos
271. 9:55let me know in the comments below
272. 9:58until next time assalamualaikum
273. 10:05you know bram stoker wrote dracula what
274. 10:08if he was actually called ibrahim stoker
275. 10:12you ever thought