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Full whitepaper here: Halal Stablecoin Litepaper V2
This product is 2-sided: a zero interest lending protocol on one end and a stablecoin on the other. This litepaper focuses on the lending side. The full whitepaper focuses more on the stablecoin.
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To join the alpha: https://borrow.inshallah.fi/
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The Challenge for SOL Holders
Holding Solana (SOL) is great, but what if you need liquidity without selling your assets? Traditional options often involve:
- Selling SOL: You lose potential future upside.
- Borrowing on DeFi platforms: You typically pay variable interest rates (riba), which can be costly and is impermissible for Muslim users.
Many SOL holders, especially experienced crypto users and those seeking Shariah-compliant solutions, need a way to access the value of their SOL holdings for spending, leveraging, or other opportunities without incurring interest charges.
The Solution: InshAllah Lending - Borrow Against SOL, Pay Zero Interest
InshAllah Lending offers a unique, Shariah-compliant solution built on the Solana blockchain. It allows you to use your SOL holdings as collateral to borrow funds at zero cost.
Core Principles:
- Zero Interest (Riba-Free): Absolutely no interest is charged on the funds you borrow.
- No Minting Fees: Accessing liquidity through the protocol incurs no platform fees.
- Retain Staking Rewards: Your underlying SOL continues to earn staking yield, even while used as collateral.
- Shariah Compliant: Designed as a Qard Hassan (benevolent loan) structure, reviewed by Shariah advisors.
- On-Chain Transparency: All operations are verifiable on the blockchain.
How Does Zero-Interest Lending Work?
The process leverages the Goldsand staking protocol and the iAUSD stablecoin. Here's the basic flow:
Step-by-Step:
- Stake Your SOL: Deposit your SOL into the Goldsand staking protocol. In return, you receive iASOL, a liquid staking token (LST) representing your staked SOL plus accumulating staking rewards.
- (Example: Stake 100 SOL, receive approx. 100 iASOL. As staking rewards accrue, 1 iASOL becomes worth more than 1 SOL).