Marhaba Defi tries to solve a problem that plagues the 𝕚𝕤𝕝𝕒𝕞𝕚𝕔 world: the cryptocurrency trade. In fact, Islam does not allow the trade of any non-existent product or article. The Quran says:
“You help one another in virtuous and pious deeds; and do not cooperate in matters of vices and adversities. And do not misleadingly consume the wealth of others by resorting to the wrong means and methods" (al-Baqara, 188)
Islamic finance is based on the fundamental principles of Islam which give the highest priority to the prosperity of every living being, to the protection of the weak, the vulnerable and the needy.
It also opposes the survival of the fittest theory. Everyone is important in society.
The concept of Islamic finance was institutionalized during the tenure of the second Caliph, Umar bin al-Khattab. He set up the State Treasury Department to manage finances.
Collecting the mandatory annual fees from eligible holders is a duty of this department. Voluntary alms were placed in the unregulated category.
Lawbreakers are treated severely regardless of their status in society.
Market watchers describe cryptocurrency as a method similar to that created in the early decades of the Muslim empire. Cryptocurrencies were created to redistribute wealth outside the rules of world finance subject to interest. Cryptocurrencies can be sharia compliant based on the use made of them. They can be possessed therefore commercially they satisfy the requirements of the Shariah, even if as has been said it depends on the use that is made of them. Shacklewell Lane mosque in East London became one of the first mosques in the UK to accept cryptocurrency donations in 2018 during Ramadan.
WHAT DOES MARHABA DO?
🅼🅰🆁🅷🅰🅱🅰 focuses on Islamic finance which is currently over $ 3 trillion in size. What products are offered:
-Non custodial wallets (to hold only Sharia compliant tokens) for IOS and Android (safe and with an eye towards privacy)
-Cross-Chain Aggregator (Dex) with low slippage
-Sharia compliant cross-chain NFT market (Islamic arts and contemporary calligraphy)
-Liquidity pool with only tokens compliant with the rules (liquidity mining / yield farming): Liquidity Harvester (APY from 5 to 15%)
-Interest-free lending (crypto is used as collateral)
-A DAO (Protocol Governance) with the MRHB token where users can propose and vote on protocol changes (without the influence of the founding team)
-The world's first ZKP-based "Decentralized Philanthropy" (De-Phi) protocol to facilitate charity towards charities (you can also track your funds to see if they actually arrive at your destination)
-Fundraising to finance new projects (start-ups) with protection from whales and bot
What MRHB DeFi tries to fight? Excessive risks, usury, gambling (through transactions) and use only of compliant tokens. Smart contracts will be subjected to "filters" so that the use of illegal resources is prohibited. Indeed, Islamic finance prohibits:
𝕽𝖎𝖇𝖆 refers to interest on loans: excess over the loan paid (usury). Basically, there cannot be both positive (lending) and negative (borrowing) interests.
Gharar refers to uncertainty, risk, fraud, deception inherent in all those goods that are "hidden". Allah mention:
"Eat not your property among yourselves unjustly by falsehood and deception, except it be a trade amongst you by mutual consent" (Al-Bakarah, 2: 188; AlNisa, 4:29)
The Quran has categorically prohibited gambling (Al-Bakarah, 2: 219 and AlMaidah, 5:93). 𝓖𝓱𝓪𝓻𝓪𝓻 also affects all those transactions made where the price is not fixed in advance. For example, you cannot buy an "option" at a certain price to have the right to buy its underlying shares, as an "option" is uncertain. An option is just a right. It is not a good whose
the specifications are clear and achievable.
Hameed (2009, p.44) defines 𝓜𝓪𝔂𝓼𝓲𝓻 as gambling and prohibits any form of commercial activity where monetary gains arise from chance, speculation or conjecture. For example, uncertainty about the timing of benefits of a life insurance contract creates a Maysir element. Casinos are also a common example of Maysir, where the transfer of wealth from the losers to the winner simply takes place without creating a new stock of wealth.
I think that the challenge undertaken by MRHB is very difficult but at the same time interesting. I have documented a lot about the situation in the Islamic world and as you can see there are many rules to respect. It is not easy. However I will try to follow their progress because from what you read in Whitepaper (MRHB DeFi) they seem to have so many ideas.
If you want to follow their developments:
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