BarakaFi: The First Halal DeFi Lending Platform powered by HAQQ and SmartCredit.io

HAQQ and SmartCredit.io have joined forces to unveil BarakaFi, a decentralized finance (DeFi) platform that redefines peer-to-peer (P2P) financing with a focus on ethics and Sharia compliance. This partnership merges HAQQ’s dedication to providing financial solutions rooted in Islamic principles with SmartCredit.io’s innovation in the DeFi space, addressing key challenges in the evolving world of P2P financing.

The Problem: Ethical Gaps in a Booming P2P Market

The global P2P lending market is projected to surpass $1 trillion by 2030, fueled by increasing demand for alternative financing models. Yet, this growing sector often lacks solutions tailored for users requiring halal, ethical frameworks. Conventional platforms are typically interest-based, creating barriers for many communities seeking Sharia-compliant opportunities.

BarakaFi addresses these challenges by enabling users to:

• Engage in repurchase agreements using digital assets as collateral.
• Generate yield through ethical profit-loss sharing, not interest-based mechanisms.
• Receive ISLM rewards, reinforcing their participation in a values-aligned ecosystem.

By integrating SmartCredit.io's technical foundation and HAQQ’s ethical finance principles, BarakaFi fills a critical void in the P2P market, offering transparency, inclusivity, and compliance with Islamic finance tenets.

Key Features of BarakaFi

• Buy/Sell Collateralized Assets: Users can purchase or sell digital assets backed by fixed-fee collateralization.
• ISLM Rewards: Participants are rewarded for ethical financing activities.
• Flexible Terms: BarakaFi offers various financing terms tailored to diverse risk profiles.
• Sharia-Compliant Yields: Returns are based on profit-loss sharing agreements, providing an alternative to traditional interest-based lending.

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SmartCredit.io’s Expertise in DeFi Lending

SmartCredit.io has developed innovative, user-friendly DeFi lending solutions focused on fixed-interest and fixed-term arrangements, such as Fixed-Term/Fixed-Interest Borrowing, lending via Fixed Income Funds, and Fixed-Rate Leveraged Lido staking.

SmartCredit.io’s self-custodial platform ensures users maintain full control of their assets, aligning perfectly with BarakaFi's principles of trust and transparency.

“Our vision at SmartCredit.io is to enable self-custodial banking to everyone in the world in a regulatory-compliant way. It's not possible via traditional banking. But it's possible via the Web3.”, said Martin [Co-Founder at SmartCredit.io].

"At HAQQ, our mission is to bring financial inclusion to underserved communities through innovative, values-driven solutions," said Alex [Co-founder at HAQQ]. "BarakaFi is not just a platform—it’s a movement to redefine how communities access and grow their wealth."

BarakaFi: A Pioneer in Halal DeFi

Step into the next era of ethical DeFi, where every financing position aligns with your values. With BarakaFi, users can securely:

• Finance repurchase agreements with digital assets such as ISLM, DEEN, or stISLM.
• Sell collateralized assets on the platform to generate halal-compliant yields.

This partnership symbolizes a major milestone in ethical finance, leveraging cutting-edge DeFi technology to empower communities globally. 

Build on HAQQ

Are you passionate about building ethical DeFi solutions? 

We're inviting builders to join the HAQQ ecosystem with hands-on support and funding opportunities from our $40 million ecosystem fund. Connect with us and be a part of shaping the future of ethical finance.

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