Is HOME (HOME) Halal or Haram?
SUMMARY
Defi App (HOME) is non-compliant because its core business includes interest-bearing yield aggregation and perpetual futures trading. Furthermore, over 33% of the protocol's revenue is derived from these non-compliant sources, which directly accrues to the token's value via an 80% buyback and burn mechanism.
Verdict by Activity
How you can hold and use HOME
Buy & Hold
The token's value is directly driven by a buyback and burn mechanism funded by non-compliant revenue (perpetuals and lending), and the protocol's core business involves interest-based products.
HOME Staking
OptionalUsers can opt-in to stake HOME for XP multipliers and Bonus HOME, which is funded by ecosystem token allocations rather than interest.
Yield Aggregation (Earn)
OptionalThe platform aggregates yield by routing user deposits to interest-bearing lending protocols such as Aave.
Rocket Perps
OptionalThe protocol offers a perpetuals trading engine with up to 1000x leverage that involves funding rates exchanged between longs and shorts.
Shariah Component Breakdown
Shariah Analysis
Infrastructure — where it runs
PassedThe asset runs on Ethereum and other general-purpose networks which are neutral infrastructure.
Application — what it does
FailedThe protocol's core business includes yield aggregation routing to interest-bearing lending protocols (Aave) and a perpetuals trading engine involving funding rates.
Asset — what you own
PassedThe token's primary utility is for abstracted gas fees and protocol governance, with an opt-in staking mechanism funded by ecosystem emissions.
Property Status (Māl)
PassedThe token is a native protocol position with established adoption, ascertainable supply, and genuine lawful use for governance and gas abstraction.
Revenue Purity
FailedOver 33% of the protocol's revenue is estimated to come from non-compliant sources (perpetuals and lending aggregation), and 80% of this revenue directly funds the token's value through a buyback and burn mechanism. The project's treasury composition and banking details are not publicly disclosed.
Legitimacy & Security
social presence
PassedThe project has achieved significant traction with over 400,000 active users and $44 billion in cumulative trading volume.
whitepaper
PassedThe project has a confirmed official website, documentation, and detailed tokenomics.
project audits
PassedAudit and security information was found and confirmed by the research.
Team & Ecosystem
team background
CautionNot covered by research.
Detailed Shariah Report
Overview
Defi App is a decentralized application that offers cross-chain token swaps, yield farming aggregation, and perpetual futures trading from a single interface. Its native token, HOME, is a protocol position used to pay for abstracted gas fees, participate in governance, and stake for rewards.
Why This Verdict
The Shariah compliance of a crypto asset is evaluated across three layers: the underlying infrastructure, the application it serves, and the asset itself. A failure at any layer renders the asset non-compliant. HOME operates on neutral general-purpose networks like Ethereum and Arbitrum, which passes the infrastructure layer. At the asset layer, HOME qualifies as recognized digital property (Mal) because it is a native protocol position with an ascertainable supply, self-custody transferability, and genuine lawful utility for governance and gas abstraction, rather than a mere claim on an issuer. However, it fails at the application layer. Purchasing and holding the HOME token is Haram. Over 33% of the protocol's revenue is derived from non-compliant sources, and 80% of all platform revenue is used to buy back and burn HOME tokens. Because this mechanism directly accrues value to the token using illicit funds, holding the asset is impermissible. Regarding optional mechanisms: Users can opt into an 'Earn' product that routes deposits to interest-bearing lending protocols like Aave, which is strictly prohibited due to riba (interest). The protocol also offers 'Rocket Perps,' a perpetuals trading engine with up to 1000x leverage that involves funding rates exchanged between longs and shorts, which is also Haram. Conversely, the opt-in HOME Staking feature is Halal, as users stake for XP multipliers and 'Bonus HOME' funded by ecosystem token emissions rather than interest.
Permissible Aspects
- The underlying infrastructure (Ethereum, Arbitrum, Solana, etc.) is neutral and permissible.
- The token qualifies as recognized digital property with genuine utility for governance and abstracted gas fees.
- The opt-in HOME staking program is funded by ecosystem token allocations rather than interest-bearing activities.
- Revenue generated purely from standard cross-chain token swaps is permissible.
Points of Caution
- !The protocol's core business heavily relies on interest-bearing lending aggregation and perpetual futures trading, which are fundamentally non-compliant.
- !The project's treasury composition and banking details are not publicly disclosed, meaning there is an unknown risk of treasury funds earning interest.
- !While the perpetuals trading engine (Rocket Perps) is not classified as a game of chance (maisir), it utilizes extreme leverage (up to 1000x) and funding rates, which are impermissible.
Purification Note
Not applicable. Because holding the token is fundamentally non-compliant due to the buyback and burn mechanism directly injecting impure revenue into the token's value, purification cannot render the investment permissible.
BOTTOM LINE
The HOME token is non-compliant because its value is directly tied to a buyback and burn mechanism funded heavily by interest-bearing lending and perpetual futures trading. While the token itself has valid utility and operates on neutral networks, the protocol's reliance on prohibited financial activities makes holding it impermissible. As always, final religious authority rests with a qualified Shariah scholar.
How this verdict was reached
This is not an opinion issued by ShariaQuant. It is the output of a documented screening methodology applied to researched facts about HOME (HOME), and every row above states the specific evidence that drove it — so the reasoning can be examined rather than taken on trust.
The framework screens three layers — the infrastructure an asset runs on, the application it serves, and the asset itself — and separately tests whether the token qualifies as recognised property (māl): that it presently exists, has an ascertainable supply, can be held and transferred, and carries a genuine lawful use. A failure at any single layer fails the asset.
Revenue-purity thresholds follow the AAOIFI screening standard: non-compliant income below 5% of revenue is tolerated and purified, while 5% or above fails the screen.
The framework follows published scholarship rather than in-house opinion. Treating a digital asset as a right (ḥaqq) that becomes recognised property (māl) only on stated conditions follows “Is Crypto Halal? The Definitive Shariah Guide to Crypto and Digital Assets” by Mufti Faraz Adam (Amanah Advisors, 2026), which reproduces the conditions identified by Mufti Taqi Usmani. Financial thresholds follow the AAOIFI screening standard. The rulings we track are collected in the fatwa library.
AAOIFI has not reviewed, approved or endorsed this report or ShariaQuant, and no scholar named in our methodology has reviewed this individual verdict. This is analysis, not a fatwa — final religious authority rests with a qualified scholar.
Is HOME a serious project?
Permissible is not the same as good. This is the research behind that second question — what HOME is actually for, who is paying for it, what is already built, and what would have to go wrong.
Research on the project, not advice on the trade. A high fundamental score is not a recommendation to buy, and it says nothing about whether the asset is permissible — that is the Shariah verdict, and it is free.
How HOME ranks against its peers
The Shariah verdict tells you whether you may own HOME. This tells you what you would be holding — measured from market data, with no AI judgment in it, and compared only against assets of the same kind.
A ranking of how solid an asset is against its peers, not a forecast of what it will do next and not investment advice. A permissible asset can rank badly, and a badly ranked asset can still rise.
About HOME
Defi App (HOME) is non-compliant because its core business includes interest-bearing yield aggregation and perpetual futures trading. Furthermore, over 33% of the protocol's revenue is derived from these non-compliant sources, which directly accrues to the token's value via an 80% buyback and burn mechanism.
Asked alongside this
Short answers from the ShariaQuant team.
So what do you hold instead?
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