An Ethical Decentralized Financial Platform, Marhaba DeFi brings the first Shariah-complaint solution to the world of decentralized finance. The Australian based DeFi team is building a Shariah-guided decentralized finance platform to navigate a course between the advantages of DeFi and the beliefs of Islamic finance.
The Marhaba Decentralized Financial Platform (MDFP) is expected to launch in the coming months and aims to inculcate DeFi ecosystem in the Islamic world, while still upholding the core tenets of Shariah.
According to the Chief Innovation Officer of Blockchain Australia and Marhaba CEO, Naquib Mohammed,
“We are building a platform that aims at the inclusivity of the community and a trusted place where faith-conscious Muslims can be onboarded without any hesitation or doubt. This platform will be a win win for both the financial body providing service and the clients.”
Marhaba DeFi’s journey began after carrying out research on the attitudes of many Arabic communities regarding crypto assets. The research revealed that in most Muslim countries, 99% of the time, the people ask: “Where do you buy this?, Is this token Halal?, Is this token Shariah-complaint?”. After the research, Mohammed seeks out respected Islamic scholars in the crypto space who believes DeFi can be conducted in a way that adheres to Shariah thoughts.
The Islamic concept of usury (riba) prohibits “high-interest loans or aggressive derivatives” products and transactions akin to gambling (maysir) and those that pose excessive risk or doubt (gharar) are also banned. Mohammed noted: “The reason Bitcoin is still under discussion by some Islamic scholars is because nobody knows who the creator of Bitcoin is. If you don’t know who created it – that means the thing is under doubt.”
Marhaba DeFi will first launch its noncustodial “Sahal Wallet” which will support custody and transfers of “Shariah-screened token and NFTs.” Future version of the wallet will be integrated with Marhaba’s forth coming “ethical trading”, “yield maximizer buckets”, decentralized charity, payments solution and Non-fungible Token marketplace products. Mohammed describes the Marhaba’s yield maximizer buckets as a “Shariah-complaint version of yield farming.”
Although, Shariah law bans charging interest on lending, Marhaba is also exploring borrowing and lending products that mobilize depositors’ assets without charging them with interest.
Marhaba’s NFT marketplace is scheduled to launch later this year. The team are working to onboard respected artists creating traditionally-inspired Islamic calligraphy.