Is providing liquidity in Meteora's DLMM pools halal? What about Dynamic AMM?
Question context
CoinStudy's answer
Research opinion from the CoinStudy Sharia team. Not a fatwa.
Meteora has two different products requiring separate assessment. DLMM pools use bin-based concentrated liquidity for pure trading fee capture with no lending component. In permissible asset pairs with halal assets on both sides this can satisfy the chairman's LP conditions and is Halal With Concerns. Meteora's Dynamic AMM and Dynamic Vault products are different. Their own documentation explicitly states deposited assets are deployed into external lending protocols to earn "lending interest" and "lending yields." This fails both conditions of the chairman's LP test completely. Do not use Dynamic AMM or Dynamic Vaults. DLMM in permissible pairs only is the only potentially permissible Meteora participation.
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