MRHB DeFi: Halal & Socially responsible Crypto Investing

By Aakasha | AakashaBlogs | 21 Nov 2021

MRHB DeFi - Islam Finance, Faith based investment and crypto

The war cry for DeFi has been financial inclusion, with 'banking the unbanked' being an unofficial slogan. In keeping with this, faith-based investment becomes a critical part of the DeFi discussion. Unlike how it sounds, faith-based investment does not mean investing in religious institutions. It is instead investing in alignment with religious beliefs. Traditional investment is driven solely by profiteering which may not satisfy many faiths. For example, investing in guns, alcohol, weed, pork, etc., is not deemed acceptable by certain religions. Although legacy investment is becoming sensitive to this, there is still an overwhelming market that remains underserved.


Cryptocurrency is a new concept that everyone is trying to decode. As fascinating as it is, it presents several challenges in understanding and adapting due to its complexity. MRHB DeFi, pronounced Marhaba ('Welcome' in Arabic) DeFi attempts to solve these challenges while catering to a specific set of underserved investors, the Muslim community. There is a lot to like about MRHB, for they do not just provide a product promising the 'moon', rather an entire ecosystem that promises economic benefit to society in a sustainable form. They are the first movers in the Islamic Financial Crypto space with offerings tailored for this community.

Products and Roadmap

MRHB DeFi has a 3-stage roadmap. The first stage is projected to take a year and will focus on building its core products. The second stage will see the launch of DePhi, the MHRB token, increased decentralized governance, and interest-free financing. Lastly, to sustain their product line growth and economic incentives, they aim to be a para chain on Polkadot.

MRHB Roadmap and phased development

Here's detailing their product offerings and how they attempt to be Shariah-compliant:

  1. Phase 1:
    • Sahal Wallet: A multi-currency, secure, non-custodial, and compliant wallet available for Android and iOS. Exclusively white-listed coins and tokens screened by the Shariah Governing Body or SGB will be allowed to be held and transacted from the wallet. Simple and easy, much like its name.
    • Souq NFT Marketplace: Souq, a marketplace in Arabic, will be its second product offering and will be a no-code, multichain marketplace for Islamic artwork and calligraphy. A team of experts will check NFTs for uniqueness and cultural permissibility. The marketplace will have Sahal wallet integration, making it effortless to store the NFTs securely.
    • Liquidity Harvester: Like any other DeFi platform, there is a Liquidity pool for investors. However, instead of functioning on Riba or interest like most liquidity protocols, it proposes to operate on Mudharab or profit-sharing. Both participants, MRHB DeFi (the Mudharib) and the investor (Rab al Maal) are subject to risk and profit similar to a business that makes it permissible as per Islam. The profit-sharing percentage is pre-decided, eliminating uncertainty or Gharar. It will provide an assured halal return between 5-15%.
    • Cross Chain DEx aggregator: Unlike other DEx with high fees and slippage, it aims to provide liquidity across chains with minimal slippage by breaking down transactions across DEx'.
  2. Phase 2:
    • Token and Launchpad: The MRHB token will be a utility token providing benefits to the MRHB ecosystem. It'll launch on the Binance Smart Chain and will have a total supply of 1 billion tokens. The use of the token will be for halal purposes such as providing fee discounts, philanthropy, and features for the ecosystem that make its use permissible. Additionally, it will be mandatory for participation in the Launchpad, a platform for launching selected and white-listed projects. These projects will encourage developers while safeguarding investors' by implementing a democratic and Whale or Bot proof funding pool. The underlying principle of this will be Quadratic Funding, a 'mathematically optimal way to fund public goods in a democratic community'.
    • Governance: Governance will evolve towards decentralization where protocols with Aragon will be used. Collective decision-making will become possible as the ecosystem matures, however, decisions regarding Shariah will remain with the SGB due to its critical and intricate nature.
    • DePhi Protocol: The Decentralised Philanthropy protocol will facilitate payment to charities directly from the Sahal wallet, whether voluntary donation (Tithe & Sadaqat) or compulsory donation (Zakat). It will also have an inbuilt Zakat calculator and Know Your Transaction donation or KYTd to furnish to authorities when required. Charities onboarded will be screened by the SGB for compliance.
    • Interest-Free Crypto Financing: Interest or Riba is non-permissible in Shariah practice in order to eliminate dispute. As such, lending and borrowing will need to be interest-free. This element would be further defined, as it is not a typical financial loan method. At this stage, the idea is to ensure that the system is in positive cash flow, which is being attempted mathematically in consultation with experts.
  3. Phase 3:
    • Parachain on Polkadot: This will enhance the flexibility required for this project to provide innovative solutions. This stage will also allow node runners to verify transactions and earn MRHB tokens, adding another layer of security to the network.

Governance, governance, governance!

MRHB sets up pretty big targets, which makes you wonder how they would achieve religious compliance. The answer is through self-regulation. Rather than wait for governance to develop, they have gone ahead and set up an in-house governance board comprised of scholars and experts in the field of finance, economics, and theology to consult and guide in bringing a product to the market. The MHRB Governance Framework consists of:

  1. The Shariah Governance Board (SGB)
  2. The MRHB Governance Board (MGB)

MRHB Governance Team and Sharia Governance Team

The SGB exists purely to screen and scrutinize every product at every stage to ensure no principles are compromised. The SGB has to sign off products with a 2/3 majority, and unless that happens, it goes through rigorous cycles of examination and modification. After the majority agrees, the decision is encoded in the smart contract for transparent record keeping.

The SGB states that cryptocurrency in and of itself is not deemed haram by Shariah laws. Its use, however, determines its permissibility. They have, therefore, categorized all crypto assets and analyzed them to decide whether they are halal or haram. The other thing they have done is rather than work on isolated products, they have designed an entire ecosystem that helps an investor buy, hold, or spend crypto in a halal manner while maintaining the tenets of decentralization and inclusion.

Crypto regulation is inevitable. Aside from a few risk-takers, the ambiguity and complexity related to crypto deter more than they attract investors. MRHB takes a proactive approach by complying with ethical practices, encouraging AML practices, and focusing on consumer protection. This line of faith-based investing provides security and ease of mind.

Highlights of MRHB DeFi

While MRHB focuses on Halal crypto offerings for the Muslim community, it doesn't exclude other investors. Instead, it provides a very stable ecosystem with features anyone would like irrespective of their faith. Here are a few things that stand out:

  1. Whale and bot-proof project launch platform, interest-free lending and borrowing, assured returns from liquidity pools.
  2. Credible team of scholars and devs, who have significant experience in their respective fields.
  3. A vesting period spread across 24-36 months, reducing the risk of rug pull.
  4. MHRB DeFi supports the UN sustainable development goals.
  5. They are signatory to the crypto climate accord.
  6. A successful first round of pre-public sales with USD 1 million raised.
  7. Internal and external audits to ensure compliance is never compromised.


The team has put in a lot of thought to bring to market a platform that not just caters to the Muslim community but goes the extra mile to provide the best that crypto as an investment opportunity can offer. MRHB DeFi is ethical, simple, and inclusive, just as it sets out to be. It is true to its name and welcoming to all. Guided by the systems of Sharia and supported in their endeavor by Blockchain Australia, Shariah Experts, and their likes, they have successfully raised USD 1 million in their 1st round of pre-sales. Registrations for their second round of pre-public sales are ongoing, with details available on their website.


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