Is this crypto halal? Shariah screening report
Stader ETHx
ETHX
- Price
- $2,695.93
- Market cap
- $210.43M
- Circulating supply
- 78,055.292
- 24h change
- 1.61%
Report generated 8/27/2026, 6:34:28 PM · stored corpus assessment · confidence 88%
Crypto Halal Report Criteria
We use a disciplined framework to determine if a digital asset is Comfortable from a sharia perspective, based on three core pillars.
Purpose & Real-World Value Clear
Stader ETHx (ETHX) is a liquid staking derivative token representing staked ETH in the Stader protocol. When users stake ETH through Stader, they receive ETHx in return, which represents their staked position and can be used in DeFi applications while earning staking rewards.
Honesty & Founder Intent Clear
The ETHx token is minted when users stake ETH and burned when they unstake, maintaining a 1:1 relationship with staked ETH plus accumulated rewards. There is no pre-mine or founder allocation of ETHx tokens specifically.
Dealing with Risk & Speculation Clear
Speculative trading of a real asset is treated as trade, not gambling, under the screening framework.
Crypto Overview
Purpose and Utility
Stader ETHx (ETHX) is a liquid staking derivative token representing staked ETH in the Stader protocol. When users stake ETH through Stader, they receive ETHx in return, which represents their staked position and can be used in DeFi applications while earning staking rewards.
Current Usage
Stader Labs has secured partnerships with multiple DeFi protocols and has significant total value locked (TVL) in their staking system. The ETHx token is actively used in various DeFi applications as collateral and for yield optimization.
Business Model
The protocol operates by allowing users to participate in Ethereum staking without directly running validator nodes. Users deposit ETH and receive ETHx tokens that appreciate in value as staking rewards accumulate. The primary revenue model comes from taking a percentage of staking rewards.
Development Activity
The project maintains active development with regular updates to their staking infrastructure and security measures. They have undergone multiple security audits and maintain transparent documentation of their systems.
Token Distribution
The ETHx token is minted when users stake ETH and burned when they unstake, maintaining a 1:1 relationship with staked ETH plus accumulated rewards. There is no pre-mine or founder allocation of ETHx tokens specifically.
Rating Justification
ComfortableFrom a Sharia compliance perspective, ETHx presents several considerations. The core functionality of representing staked ETH positions is fundamentally an exchange of assets and creation of real utility through network validation. The token represents actual ownership of staked ETH and provides legitimate utility in the form of network security and validation. However, a significant portion of the token's utility comes from its use in DeFi protocols, many of which involve interest-bearing lending activities that would be considered non-compliant from an Islamic finance perspective. While the base staking mechanism itself can be considered halal as it represents actual work in securing the network, users should be cautious about how they utilize their ETHx tokens.
While we find this token comfortable to invest in from a Shariah-screening perspective, this does not imply we think it is a strong investment.
Comparable assessments
Liquid Staked ETH LSETH
ComfortableComfortable — LSETH represents actual ownership of staked ETH and provides legitimate utility through network validation. The token facilitates a real exchange of value and s
Open reportStakeWise Staked ETH osETH
ComfortableComfortable — The analysis of StakeWise's osETH token reveals that it serves a clear technological purpose in the Ethereum ecosystem by facilitating network security through
Open reportSwell Sweth SWETH
ComfortableComfortable — From an Islamic finance perspective, swETH represents legitimate ownership of staked ETH and provides actual utility through network validation. The token has c
Open reportBounceBit BTC BBTC
ComfortableComfortable — Sharia Compliance Analysis From an Islamic finance perspective, BounceBit BTC appears to operate as a genuine cryptocurrency where actual ownership of tokens is
Open reportCoinbase Wrapped Staked ETH cbETH
ComfortableComfortable — From a Shariah compliance perspective, cbETH represents legitimate utility as a liquid staking solution. The token has clear underlying value (staked ETH), faci
Open report
Disclaimer: These reports are findings of AI analysis and cannot be guaranteed to be accurate. Ratings reflect opinions derived from automated criteria applied to the sources you submitted and a corpus of prior assessments. This is not a fatwa and does not determine Islamic law. Ratings may change as projects evolve. Always conduct your own research before investing.
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