Liberty Finance Partner HAQQ Network to Launch 'Firoza Finance'

Liberty Finance Partner HAQQ Network to Launch 'Firoza Finance'

Liberty Finance Partner HAQQ Network to Launch 'Firoza Finance'

May 8, 2024

Introducing Firoza Finance - A Shariah Compliant Microfinancing Protocol Compliant

In an exciting development for the world of decentralized finance (DeFi), Liberty Finance and HAQQ Network enter into a partnership to launch 'Firoza Finance,' a groundbreaking financing protocol focused on private credit solutions that combines the principles of Islamic finance with the transparency and security of blockchain technology. This partnership brings together Liberty Finance's expertise in financial services and technology with HAQQ Network's robust blockchain infrastructure to create a platform that is set to revolutionize the credit financing landscape.

With the growing Private Credit Industry ($1.7 trillion, February 24th 2024 - Bloomberg), Firoza Finance aims to bring a fresh perspective in both Western-based and Islamic-based finance by providing the first blockchain-based Private Credit solution. The solution offers multiple benefits for investors and borrowers. Investors can engage in the market through both crypto staking and traditional fund investments. For borrowers, it provides easy access to funding, which is crucial for scaling their businesses and ideas. This accessibility removes significant barriers that often hinder business growth.

Initially built for Micro-financing, our solution will be used in evaluating and executing on risk, in an ethical and scalable manner.  These  efforts  will open collaboration up with  larger Private Credit facilitators,  who wish to provide larger commercial investments on a B2B basis. Being powered by the HAQQ blockchain network ensures that not only is the entire system transparent, but it also strictly adheres to halal standards, making it an attractive vehicle for Islamic, Traditional, Crypto, and Islamic Crypto-based investments.

Firoza Finance aims to address the challenges faced by traditional micro-financing models; such as high operational costs and limited accessibility, by leveraging the power of blockchain. The platform operates on the HAQQ Network, an EVM-equivalent chain built on the Cosmos SDK, allowing for seamless integration of smart contracts and ensuring compatibility with other EVM chains.

Key Features and Benefits of Firoza Finance

One of the key features of Firoza Finance is its adherence to Islamic finance principles. The platform offers Shari'ah-compliant financing pools for both investment and loans, enabling users to manage their finances in accordance with their faith. This ethical approach to micro-financing sets Firoza apart from conventional platforms and appeals to a wide range of users seeking financial products that align with their values.

The platform's architecture combines Liberty Finance's proven technological, and innovative stack for seamless front-end and back-end operations with HAQQ Network's robust blockchain infrastructure. This synergy allows for the creation of an on-chain protocol that facilitates micro-financing activities with utmost precision and integrity. The use of blockchain technology ensures transparent and secure transactions, reducing the risk of fraud and enhancing trust among all participants.

Firoza Finance will offer a range of features and benefits to its users:

  1. Access to Private Credit Investment: Users will be able to participate in private credit investment opportunities through the platform, enabling them to diversify their portfolios and earn attractive returns.

  2. Lending Services: Firoza will provide Shari'ah-compliant lending services, allowing users to access financing in a manner that adheres to Islamic financial principles.

  3. On-Chain Solution: By leveraging blockchain technology, Firoza will ensure that all transactions and agreements are recorded on an immutable ledger, providing transparency and security.

Liberty Finance and HAQQ Network have partnered to advance ethical Islamic finance through decentralized technologies. HAQQ Network, an EVM-equivalent chain, allows easy deployment of smart contracts from other EVM chains, promoting blockchain adoption while adhering to ethical finance principles. Liberty Finance pioneers ethical and inclusive decentralized finance with its DEX and swift commodity Murabahah lending protocols, revolutionizing and democratizing finance.

The launch of Firoza Finance marks a significant milestone in the world of micro-financing, providing a platform that combines the benefits of blockchain technology with the principles of Islamic finance. The platform's goal is to grow the initial combined fund pools to $100 million and, in the long term, to surpass $1 billion.

To kickstart this growth, Firoza is launching with three pilot funds:

  • Chromium Concentrate Supply Financing: Bridging finance for the supply of chromium and other minerals in Africa.

  • Trade Receivables Funding: Tokenized Halal invoice financing for Muslim-owned businesses in Hong Kong.

  • Brazil Farming Expansion: Farming investment and growth to raise funds for expansion and sustainability.

These pilot funds demonstrate the platform's commitment to supporting diverse sectors and geographies, while adhering to ethical and Shari'ah-compliant financing principles. As the platform continues to develop and evolve, it is poised to make a significant impact on the lives of individuals and communities seeking ethical and transparent financial solutions. 

With ambitious growth targets and a focus on diverse pilot funds, Firoza aims to empower individuals, businesses, and communities across the globe by providing access to Shari'ah-compliant, transparent, and secure financial services. As the platform expands and evolves, it has the potential to redefine the landscape of micro-financing and make a lasting impact on the lives of countless individuals seeking ethical financial solutions.

Firoza Finance - Roadmap

The current roadmap for the protocol is already well underway, with the below key milestones planned over the next weeks.

Initial Deployment on Testnet - Current

Firoza Finance has successfully deployed a preliminary version on a testnet environment, designed to simulate real-world operations and functionalities. This initial deployment allows the team to engage in comprehensive testing, ensuring every facet of the platform operates seamlessly and securely. This crucial phase is focused on identifying and addressing any potential issues, optimizing performance, and fine-tuning the user experience.

Audit and Verification - Mid May 2024

With the testnet operational, the next step will be to subject the platform to a rigorous audit process. Scheduled for mid-May, the audit will be conducted by renowned experts in blockchain technology and finance. The objective is to verify the integrity and security of the smart contracts and system architecture. This audit will provide an added layer of confidence in the platform's readiness for wider use, ensuring that all operations meet the highest standards of security and compliance.

Mainnet Launch and Public Accessibility - End May 2024

Following a successful audit, Firoza Finance is poised to launch on the mainnet by the end of May. This pivotal moment will mark the platform’s transition from a controlled testing environment to live operations. The mainnet launch signifies Firoza Finance's readiness to offer its services to the public, opening up a world of ethical financing opportunities. 

Commencement of Lending Activities - June 2024

Concurrent with the mainnet launch, Firoza Finance anticipates approving and executing its first series of loans. The end of May will see the first borrowers benefiting from our unique micro-financing solution. These initial loans will not only symbolize the operational commencement of Firoza Finance but will also lay the foundation for financial inclusion and ethical lending practices in the DeFi and Traditional Finance space.

The loans actioned at this stage will embody both HAQQ and Liberty Finance’s values and capabilities, showcasing the ease, transparency, and ethical framework that Firoza Finance aims to deliver. As these first loans are distributed and subsequently repaid, the protocol will gather valuable insights that will inform the continuous improvement and enhancement of the platform.

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