Quick Verdict
Chainlink (LINK) is DOUBTFUL but arguably the most defensible of the DeFi-adjacent cryptocurrencies from an Islamic perspective. Its core utility — providing data to smart contracts — is a genuinely neutral service function.
The Oracle Use Case
Chainlink's value proposition is providing neutral data infrastructure. A smart contract needs external data to function — Chainlink delivers it. This is similar to an API provider or a data service company. The service itself is neutral technology.
The DeFi Dependency Problem
The majority of Chainlink's usage comes from DeFi lending protocols — they need price feeds to know collateral values. Aave, Compound, and other lending protocols are Chainlink's biggest customers. This means LINK's value is heavily tied to the success of riba-based DeFi lending. This is the core concern.
Staking
Chainlink's staking program (introduced in 2022) allows LINK holders to stake and earn rewards for providing security to oracle networks. The same staking debate applies.
Bottom Line
Chainlink provides a legitimate service but its primary customers are riba-based DeFi protocols. Some scholars might permit LINK as a neutral infrastructure token; others would exclude it due to the DeFi dependency. Classify as doubtful.
Use our free halal checker to screen any crypto or stock.
Open Halal Checker →