🕌 The First On-Chain Islamic DeFi Protocol

Islamic DeFi:
Halal Crypto Financing on Blockchain

Buy ETH or BTC in Sharia-compliant installments via on-chain Murabaha - no riba (interest), no bank, no intermediary. Built on Base Mainnet.

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What is Islamic DeFi?

Islamic DeFi (Decentralized Islamic Finance) applies Sharia-compliant financial contracts - like Murabaha (cost-plus sale) - through smart contracts on the blockchain, replacing banks and intermediaries.

It combines the transparency and accessibility of DeFi with Islamic finance principles: no riba (interest), no gharar (excessive uncertainty), and genuine asset ownership before sale.

The 4 Sharia Principles Enforced in Code

🚫
No Riba (Interest)
Profit is fixed at sale, never compounding. No interest accrues on delayed payments.
Real Ownership (Qabd)
Seller must deposit the actual asset before the sale. Buyer receives it immediately.
📋
Known Price (No Gharar)
Total cost, profit margin, and installment schedule are fixed and transparent upfront.
⚖️
Fair Collateral
Surplus collateral is always returned to the buyer - taking it would be unjust.

What is Qist Protocol?

Qist (Arabic: قسط - "installment") is the first live, decentralized Islamic Murabaha protocol on Base Mainnet (Ethereum L2 by Coinbase). It is a smart contract that enables Sharia-compliant installment purchases of ETH and BTC.

Smart Contract (Proxy - permanent address)
0xb2275E4aA2724D875a1a00206b40dD0fF188DEd5
Network: Base Mainnet (Chain ID 8453) · Verified on BaseScan · UUPS Upgradeable Proxy

How On-Chain Murabaha Works - Step by Step

1
Seller Deposits Asset The seller locks real ETH or BTC into the smart contract, establishing genuine ownership before any sale (fulfilling the Islamic requirement of possession before sale).
2
Buyer Chooses Terms The buyer selects quantity and number of installments. Profit is calculated proportionally to the term - known upfront, never hidden.
3
Instant Asset Delivery The buyer receives the real asset (ETH/BTC) immediately - not cash, not a promise. This is a sale, not a loan.
4
USDC Installment Payments The buyer pays installments in USDC (stablecoin) to avoid price volatility (gharar). Payments can be manual or automated via Chainlink.
5
Grace Period Before Liquidation A 3-day grace period (rifq bil-madin - leniency toward the debtor) precedes any liquidation. Surplus collateral is always returned to the buyer.

Islamic DeFi vs Conventional DeFi

Feature Conventional DeFi (Aave, Compound) Qist Islamic DeFi
Contract Type Interest-bearing loan (riba) Cost-plus sale (Murabaha)
Profit Structure Variable interest, compounding Fixed markup, agreed upfront
Asset Delivery Receive cash/tokens to speculate Receive the actual asset immediately
Ownership Before Sale Not required Mandatory (real deposit in contract)
Sharia Compliance Haram (riba-based) Halal by design
Transparency On-chain but complex Fully transparent, open source

Frequently Asked Questions

What is Islamic DeFi?

Islamic DeFi applies Sharia-compliant financial contracts - Murabaha (cost-plus sale), Musharakah (profit-sharing partnership), Ijarah (lease) - through blockchain smart contracts. It replaces banks and intermediaries while maintaining Islamic principles: no riba (interest), no gharar (uncertainty), and real asset ownership.

Is DeFi halal for Muslims?

Most conventional DeFi (Aave, Compound, Uniswap yield farming) involves riba (interest) and is therefore haram. However, Islamic DeFi protocols designed around Murabaha or other Sharia-compliant contracts can be halal. Qist Protocol is built specifically to comply with Islamic finance principles - no interest, real asset sale, fixed and transparent profit.

Can Muslims buy Bitcoin or Ethereum in installments without interest?

Yes - through Islamic Murabaha financing. Qist Protocol enables this on Base blockchain: a seller deposits real ETH or BTC, sells it to you at a fixed pre-agreed markup paid in USDC installments. You own the asset from day one. This is a sale, not a loan - there is no interest, and the profit does not compound.

What is Murabaha in Islamic finance?

Murabaha (مرابحة) is an Islamic finance contract where a seller purchases an asset and sells it to the buyer at a disclosed cost-plus profit margin. The buyer may pay in installments. The key features: (1) seller must own the asset before selling, (2) profit is fixed and transparent, (3) price does not increase with late payment. It is one of the most widely used halal financing instruments in Islamic banks.

What makes Qist different from Islamic banks?

Islamic banks are centralized institutions requiring licenses, imposing fees, and potentially mixing compliant and non-compliant operations. Qist is a fully decentralized smart contract: its code is public and immutable (for the logic), any profit or collateral handling is transparent on-chain, and it requires no trust in a human intermediary. It's Islamic finance enforced by code, not by claims.

What is riba-free crypto financing?

Riba-free crypto financing uses Islamic contracts instead of interest-bearing loans. In Murabaha, the profit comes from a legitimate sale at a fixed markup - not from lending money at interest. The total amount owed is fixed from day one and cannot increase. Qist implements this for ETH and BTC on Base blockchain.

Which blockchain does Qist use?

Qist is deployed on Base Mainnet (Chain ID 8453), an Ethereum Layer-2 network by Coinbase. Base offers low gas fees, fast transactions, and is fully EVM-compatible. The smart contract address is 0xb2275E4aA2724D875a1a00206b40dD0fF188DEd5 (permanent proxy address, verified on BaseScan).

Start Halal Crypto Financing Today

Buy ETH or BTC in Sharia-compliant installments - live on Base Mainnet.

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