Sydney DeFi Project Marhaba To Provide Islamic Finance Using Ethical Practices

May 16, 2021, 9:00 AM AEST (updated May 17, 2021)

Based out of Sydney, a new DeFi platform called Marhaba will be working to explore ways to bring decentralised finance to over 2 billion Muslims in a way that does not contradict Islamic laws on usury and investments.

Marhaba – which means “Welcome” in Arabic – is a new DeFi platform started by Naquib Mohammed, after noting the moral dilemmas many Muslims face when thinking about getting into cryptocurrency.

“We are building a platform that aims at the inclusively of the community and a trusted place where faith-conscious Muslims can be onboarded without any hesitation or doubt.”

Solving Religious And Moral Dilemmas

Set of Elegant Ramadan Kareem Lantern or Colorful Lights in Islamic Pattern

Since Islam prohibits high-interest loans, aggressive derivatives and excessively risky investments, one can see how cryptocurrency may put devout Muslims in a bit of a pickle when considering whether to get into crypto and decentralized finance.

“In the Muslim countries, we found that 99% of the time, people ask: ‘Is this token Halal? Is this token Shariah-compliant?’ […] Question number two is: ‘Where do you buy this? The reason that Bitcoin is still under discussion by some scholars in the Islamic ecosystem 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.”

Additionally, artistic depictions can also be tricky to deal with due to religious laws concerning idolatry. However, as anyone familiar with mosques such as Nasir al-Mulk in Shiraz can tell you, abstract patterns are fair game – which allows for the creation of NFTs that do not conflict with Sharia Law.

Marhaba Finance aims to solve both of these issues by collaborating with Islamic scholars to create their platform according to the precepts of Islamic law. They will also launch a non-custodial “Sahal” wallet, which will allow for transfers and custody of “Shariah-screened NFTs and tokens”.

Ethical Wallet and Trading Platform

According to the whitepaper, the project will launch in 2021 both a “Sahal Wallet” and Ethical Trading Platform and other features through the Marhaba Decentralized Financial Platform (MDFP).

The project will launch the $MRHB ERC-20 token using Ethereum with a supply of 500 million tokens (see the whitepaper for token allocation).

The NFT marketplace is scheduled for launch later this year. With a sharia-compliant version of yield farming will also be coming to the platform – as well as ways to donate to charity, fulfilling another obligation to the five pillars of Islam.

The project is also supported by Blockchain Australia and Neo Legal to assist with crypto regulations.

Read more about Marhaba on LinkedIn.

Get involved on the Marhaba DeFi interest Form.

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