Is Kava (KAVA) Halal or Haram?

Screening Criteria

• Cross-chain DeFi utility ✅
• Core product is crypto lending ❌
• Borrowers pay interest (riba) ❌
• Lenders earn interest (riba) ❌
• Structured as a decentralized bank ❌

Scholar’s Note

Kava is a decentralized bank — users deposit crypto and earn interest, others borrow and pay interest. This is a textbook riba model. Even though it's decentralized, the mechanics are identical to conventional interest-bearing banking. Classified as haram.

Our Screening Methodology

We screen every cryptocurrency against 5 criteria derived from AAOIFI Shariah Standards and scholarly consensus:

• ✓ No Riba — No interest-bearing mechanisms or yield that resembles usury
• ✓ No Gharar — No excessive uncertainty or deception in the token’s structure
• ✓ No Maysir — No gambling mechanics or purely speculative mechanisms
• ✓ Genuine Utility — The asset serves a real economic or technological purpose
• ✓ Halal Business — The underlying project does not facilitate haram activities