Islamic principles are based on the Shariah, which acts as the expression of God’s command, constituting duties for living, leading to a path to accomplishment in life for Muslims. Friends, family law and business are one of the areas of daily life that Sharia gives guidance to. The notion of money and wealth in Islam is different than mainstream belief and has to be cautiously used according to the Shariah. Therefore, prohibitions have to be carefully respected, such as the following ones:
- uncertainty and usury, e.g. loans that only attracts gain
- injustice and illegal behavior, e.g. fraudulence and dishonesty
- gambling, e.g. wealth made from luck instead of concrete activity
So, according to the principles of the Shariah, a wealth may be either Halal, meaning lawful/permitted, or Haram, meaning unlawful/not permitted. Moreover, the same is applied in Islamic finance. Muslim people have to conduct financial matters in a Shariah compliant way so that income, investment or asset check requirements to be halal. For instance, most of the time a tradable item is deemed lawful when the following conditions are met:
- being own
- having a legal value
- having a monetary value
Cryptocurrency in Islamic Finance is a topic that has had many debates these past recent years, especially on the fact of being Shariah compliant or not. For this reason, many Muslim people might have been left aside from the crypto ecosystem, but today it may change. Indeed, a DeFi project, named Marhaba, was created as an entire ecosystem to bring Shariah based solutions in crypto, so that Muslim community has the opportunity to be involved in ethical investments into DeFi ecosystem.
1. Marhaba DeFi Project Purpose
Marhaba DeFi acts to bridge the line between the Faith-Conscious Communities and the Cryptocurrency world, by incorporating universally applicable principles of Shariah into Cryptocurrency principles, so that DeFi solutions are brought to over a billion people left aside from the crypto ecosystem because of reasons related to faith or complexity. Therefore, through this project, an all-in-one DeFi solution takes place to give Muslim and non-Muslim people the opportunity to be involved in ethical investments into DeFi ecosystem, by integrating the theology of Islamic Finance, to conduct financial matters in a Shariah compliant way.
You can learn more about it by reading their official papers, e.g. Lite Paper.
2. Marhaba DeFi Project Members
Marhaba DeFi project is a team composed of people with stellar profiles, publicly verifiable, with various specificities and specialities.
We can find persons in charge of the development of the project by being involved in financial department, marketing organization, Resarch&Development, ...:
Members of the development of the team
There are also Sharia Experts that ensure that products are Sharia compliant and therefore lawful/permitted from the field of Islamic Finance:
Members of the Shariah expertise
The team is also composed of experienced advisors, providing them important suggestions so that right decisions are made:
You can learn more about the team on the official website page.
3. Marhaba DeFi Project Products
Marhaba DeFi Project is much more than a single product and aims to be an entire DeFi ecosystem.
3.1. Sahal Wallet
Marhaba DeFi aims to offer a Shariah compliant, simple to use and secure non-custodial wallet, named Sahal Wallet. This mobile wallet allows to store assets approved by the Shariah team while letting users having full control of their assets by owning the private keys of their personal wallet, operating multi-chain through multi-assets. Sahal Wallet is not a mandatory requirement to access Marhaba DeFi ecosystem, but acts as a gateway to Marhaba DeFi solutions such as being a simple but very efficient wallet, swapping, accessing NFTs or identifying assets compliant to the Islamic financial ethical.
3.2. Souq NFT Platform
Marhaba DeFi Project aims to offer a marketplace for Shariah compliant NFTs, promoting digital art such as Islamic Art and regional culture. This marketplace will be built as a no-code platform, so that creators and artists will only have to upload their artworks to the platform to convert them into NFTs through the smart-contract running behind it. Like this, the complexity to access NFTs is slightly reduced.
3.3. Liquidity Harvester
The DeFi solution is designed to generate halal returns in 5-15% EAPR (Expected Annual Percentage Returns), while not having any lending a.k.a. usury. In fact, through the Marhaba ecosystem, users can generate these returns with low risk, by depositing their assets in the available liquidity pools and earn from trading fees. The Shariah structure and conditions of this cross-chain liquidity harvesting protocol is based on profit sharing and joint venture between harvesters, providing investment capital, and Marhaba Defi, the managing trustee.
At the beginning, stablecoins assets will only be possible for liquidity harvesting, to avoid the risk of volatility between deposit and withdraw of funds. Then, non-stablecoin assets will be implemented as liquidity harvesting, providing more returns considering the risk of volatility.
3.4. The Dexregator
In the crypto universe, CEXs (Centralized Exchanges) are widely used to conduct trades, compared to DEXs (Decentralized Exchanges) less used, due to higher fees and slippage.
Marhaba ecosystem provides a cross-chain aggregator, named The Dexregator, enabling to swap assets at the best rate, while providing low slippage.
3.5. The $MRHB Token
The native token of Marhaba ecosystem, $MRHB token, is a utility token used to facilitate the use of the MRHB ecosystem. The total supply of the token is 1 billion, distributed as follows:
Its utilities may be the following ones:
- paying transactions fees, e.g. NFT marketplace transactions
- having fees reduced for users holding more than 5000 $MRHB, e.g. one-time withdrawal fee for liquidity harvester reduced from 10% to 7%
- giving exposure to certain assets within the Sahal Wallet, creating pop up notifications for users of the wallet and giving them $MRHB token for viewing the advert
- governance for users holding more than 9999 $MRHB tokens, e.g. voting for proposals
3.6. The DAO Treasury
The DAO (Decentralized Autonomous Organization) is an organization built to automate decisions and transactions. In Marhaba ecosystem, the DAO treasury is responsible for the decisions related to the project funds, so that fees can be properly re-invested, giving MRHB ecosystem sustainability.
You can learn more about Marhaba DeFi Project products by reading Marhaba White Paper.
4. Useful Links
Be connected with Marhaba DeFi project:
- Check out Marhaba DeFi Official Website
- Have a look at Marhaba's papers to learn more about the project
- Check out Marhaba DeFi on Medium to read MRHB related posts
- Stay tune to the project by following Marhaba's Twitter
- Check out the Marhaba DeFi English Telegram and be involved as a community member
- Stay tune to any news by joining Marhabas's Telegram Announcements Channel
- Follow Marhaba on LinkedIn
- Check out Marhaba YouTube Channel and learn more about the project through videos
- Be an Early Marhaba Supporter by joining MRHB DeFi Sale
5. Final Thoughts
Investing in the cryptocurrency universe may be a topic that has had many debates these past recent years regarding Islamic finance. Looking for DeFi protocols may lead to the discover that most of these ecosystems are non Shariah compliant, that is why Marhaba Defi Project has been founded. Marhaba ecosystem acts to clear the gap between the Faith-Conscious Communities and the cryptocurrency world, by incorporating universally applicable principles of Shariah into Cryptocurrency principles. That way, DeFi solutions are brought to over a billion people left aside from the crypto ecosystem because of reasons related to faith or complexity, giving Muslim and non-Muslim people the opportunity to be involved in ethical investments into DeFi ecosystem, by integrating the theology of Islamic Finance, to conduct financial matters in a Shariah compliant way.
Thank you for having read my post, feel free to share your thoughts and any other feedbacks in the commentary section, particularly if I misled something!