Firoza Finance launched a $2 million pilot program as part of a partnership between Liberty Finance and HAQQ Network. Firoza Finance is known for empowering the Muslim community through innovative decentralized finance (DeFi) solutions. This new program, the world’s first real-world Mudarabah smart contract is being offered, offering financial services compliant with Islamic law in decentralized finance (DeFi).
Firoza Finance Offering Unique Investment Pools
The pilot program is structured around 3 distinct investment pools, collectively holding a total value locked (TVL) of over $2 million. These pools will provide diverse returns, appealing to investors with varying risk appetites. The initiative aims to contribute revenue to Liberty Finance’s Amana Vaults, a Shariah-compliant investment product.
Firoza Finance is focused on addressing a fundamental gap in the DeFi market, which often lacks ethical financial products aligned with religious beliefs. The platform offers a Shariah-compliant microfinancing solution that meets these needs. This also reduces the high operational costs typically associated with traditional financing, often limiting accessibility for small businesses and entrepreneurs.
Cutting Costs and Enhancing Access
Firoza Finance aims to lower borrowing costs by eliminating intermediaries and utilizing blockchain technology from the HAQQ Network. This efficiency provides better access to funding for small businesses, particularly those previously excluded from conventional financing due to high fees and administrative barriers. The pilot program represents a shift toward making ethical financial products more accessible globally.
Firoza Finance leverages HAQQ Network’s blockchain infrastructure to ensure transparency and security in all transactions. The platform is designed to automate processes through smart contracts, further reducing operational costs. This collaboration with Liberty Finance and HAQQ Network enhances the user experience by streamlining the lending process.
Patrick Devereaux, CFO at Liberty Finance, shared his enthusiasm for the project. “The development of the Mudarabah smart contract represents a significant advancement in combining traditional Islamic financial principles with modern blockchain technology,” he said.
