Deenar Gold, the gold-backed stablecoin built on HAQQ Network, enables holders to generate halal passive income in the decentralized space by supplying liquidity to DEEN pool pairs on decentralized exchanges (DEXs) such as Sushi, a leading cross-chain DEX available on HAQQ. This decentralized mechanism offers an efficient way for Muslims to participate in DeFi, enabling them to create halal passive income streams in web3, all in a Sharia-compliant manner. Here’s a comprehensive guide for those looking to provide liquidity and generate halal yields through their DEEN holdings.
What is liquidity provision?
Liquidity provision is a fundamental aspect of decentralized exchanges (DEXs), enabling users to trade crypto assets seamlessly without the need for intermediaries. On DEXs, liquidity is provided by individuals who contribute their tokens to trading pairs, ensuring that there are enough assets available for smooth trading. In return, liquidity providers are rewarded with a portion of the trading fees, making it an attractive way to earn passive income.
Is liquidity provision halal?
Liquidity provision is permissible under Sharia law as it involves supplying assets to liquidity pools, where the funds are used for trading rather than lending. Participants earn a portion of the trading fees as a reward, which aligns with the concept of Ujrah (fee for services). Liquidity providers are further incentivized with extra tokens for contributing liquidity and assuming associated risks, making it a halal and compliant way to participate in decentralized finance.
Step-By-Step Guide to Providing Liquidity to DEEN Pools on Sushi
Step 1: Visit SushiSwap https://www.sushi.com/swap
Step 2: Connect your EVM-compatible wallet;
Step 3: Make sure your wallet is connected to HAQQ Network;
Step 4: Navigate to the ‘Pools’ section;
Step 5: In the search bar, type ‘DEEN’;
Step 6: Select the DEEN/ISLM pair;
Step 7: Click Create Position;
Step 8: Choose the price range where you’d like to provide liquidity.
Step 9: Enter the amount of ISLM and DEEN tokens you’d like to provide (typically, you’ll need a 50/50 split in USD value).
Step 10: Click ‘Preview’, then ‘Add Liquidity’ to confirm.
We invite you to explore its benefits and see how it can transform your financial activities. Stay tuned as we continue to innovate and expand within the HAQQ ecosystem, bringing cutting-edge ethical solutions designed for a stable, secure, and prosperous future.
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