Company: Qist Network
Product Name: HalalUSD – A Shariah-Compliant Stablecoin Market-Making Product
Role: Principal Shariah Advisor
Client Type: Islamic Defi Ecosystem
Engagement Type: Strategic Shariah Structuring, Product Advisory, Certification
Overview:
As the Principal Shariah Advisor to Qist Network, Dr. Farrukh Habib designed and oversees HalalUSD, a pioneering decentralized investment solution that enables halal income generation through stablecoin liquidity pools, without any exposure to Riba or impermissible protocols.
The Challenge:
Most Defi yield products today rely on interest-based lending, derivatives, or excessive uncertainty (Gharar), making them non-compliant with Shariah principles. This creates a void for Muslim users seeking ethical income solutions in the digital economy.
The Solution:
HalalUSD introduces an Islamic investment agency model where Qist acts as an agent for investors to deploy funds into selected halal liquidity pools. Designed with rigorous Shariah safeguards, the product includes:
- Stablecoin-based liquidity provisioning on Solana-based DEXs (e.g., Orca, Raydium, Meteora, Kamino*)
- Fee-based profit generation from real trading activities (not interest or lending)
- Profit Equalization Reserve (PER) for smoothing returns during low-performance cycles
- Pre-approved list of halal stablecoins, reviewed and certified for use
- Dynamic fund allocation using a Lulo-inspired optimization model to improve capital efficiency
*Kamino used only in non-interest sections.
The Impact:
HalalUSD provides a transparent, scalable, and Defi-native alternative to conventional savings or yield products, built from the ground up on Islamic finance principles. By integrating continuous Shariah monitoring and public documentation, it builds trust with both retail and institutional users—bridging faith and finance in the digital age.
