Liberty Finance is a decentralized finance platform integrating Shariah-compliant financial services with blockchain technology. It aims to modernize Islamic finance by offering transparent, compliant, and scalable solutions within the DeFi ecosystem. ^[2]

Overview

Liberty Finance (LibFi) creates Shariah-compliant financial services by combining Islamic finance principles with decentralized finance (DeFi) and blockchain technology. The platform addresses long-standing challenges in Islamic finance, such as the inefficiencies of commodity murabahah and limited access to ethical financial products. Traditional processes often involve complex coordination, lengthy approvals, and unclear terms, making it difficult for users to access or understand compliant lending options. LibFi aims to solve these issues by using blockchain to provide greater transparency, faster access, and publicly auditable transactions, aligning with Islamic finance’s focus on fairness, clarity, and risk-sharing.

Built on the Arbitrum blockchain to support low-cost, high-throughput operations, LibFi offers a range of tools and services designed for DeFi users and those seeking faith-based financial solutions. These include a decentralized exchange (LibFi DEX), a lending platform based on commodity murabahah (IFaas), advanced trading tools for compliant risk management, and Amana Vaults for token staking and rewards. LibFi also launched Firoza Finance in partnership with HAQQ Network to provide Shariah-compliant microfinance options. Through LibFi Academy, the platform offers educational resources to help users understand DeFi and Islamic finance principles and tools. LibFi creates a transparent, inclusive, and ethical financial ecosystem by integrating these systems. ^[1]

Ecosystem

LibFi DEX

The LibFi DEX decentralized exchange is designed to facilitate digital asset trading in a secure, transparent, and Shariah-compliant environment. Unlike traditional DeFi platforms that rely on interest-based mechanisms or speculative trading, LibFi DEX removes these elements to support users seeking ethical alternatives. Powered by Decentralized Finance Artificial Intelligence (DeFAI), the platform enhances trade execution and liquidity management through real-time compliance checks and intelligent pattern analysis. DeFAI dynamically balances liquidity pools, reduces slippage, and optimizes transaction efficiency while ensuring all assets and activities adhere to Islamic finance principles. Its Mudarabah-based model offers liquidity providers revenue-sharing opportunities without involving interest, aligning with ethical standards and promoting equitable participation.

Built on Arbitrum’s Ethereum Layer-2 network, the LibFi DEX offers fast, low-cost transactions without compromising user security. The platform incorporates safeguards such as multi-signature wallets, smart contract audits, and real-time monitoring to protect assets. It also integrates seamlessly with Liberty Finance’s broader ecosystem, including IFaaS, Firoza Finance, and LendWide, enabling cross-platform asset trading. Through blockchain transparency and DeFAI-powered automation, the LibFi DEX provides a compliant, efficient, and inclusive solution for decentralized trading, setting a new benchmark for ethical finance in the DeFi space. ^{[5] [8]}

LibFi Academy

LibFi Academy is Liberty Finance’s educational platform to enhance financial literacy in decentralized finance (DeFi) and Islamic finance. It offers users tailored resources, including courses, tutorials, and tools covering core topics such as DeFi fundamentals, Shariah compliance, risk management, and trading strategies. Using Decentralized Finance Artificial Intelligence (DeFAI), the Academy personalizes learning by adapting content to each user’s goals, experience level, and financial activity.

Integrated with the broader Liberty Finance ecosystem, LibFi Academy provides practical exposure to products like IFaaS, Firoza Finance, and LendWide, enabling users to learn through real-world applications. It also functions as an interactive digital tutor, answering user questions and offering guidance on DeFi and compliance topics. This AI-driven approach aims to make financial education accessible, especially in underserved communities.

Liberty Finance emphasizes education as a foundation for inclusion and sustainability. By closing knowledge gaps and demystifying complex financial systems, LibFi Academy empowers users to engage confidently with DeFi in a way that aligns with their ethical and religious values. This strategy supports long-term user engagement, encourages responsible participation, and contributes to the growth of a compliant and informed financial ecosystem. ^{[1] [8]}

LendWide

LendWide is a decentralized lending platform that eliminates liquidation risk, offering a more stable and secure borrowing experience. Unlike traditional DeFi platforms, where falling collateral values can trigger forced liquidations, LendWide uses a DeFAI-based Risk-Adjusted Dynamic Hedging (RADH) mechanism to protect users from such outcomes, even during high market volatility. This approach enhances borrower security, supports market stability, and improves capital efficiency. Structured around the principles of commodity murabahah, LendWide issues fixed-rate loans with predetermined repayment terms, ensuring compliance with Islamic finance and offering borrowers clear, upfront cost structures without unexpected fees.

The platform is fully integrated with the IFaaS engine, enabling institutional lenders to offer compliant financial products with minimal operational complexity. This integration allows LendWide to scale across retail and institutional markets, combining DeFi’s transparency and automation with the ethical requirements of Shariah-compliant finance. By eliminating liquidation risks and offering stable, fixed-rate lending, LendWide provides a reliable option for users seeking ethical and predictable financial solutions within the DeFi ecosystem. ^[8]

IFaas

IFaaS (Islamic Financing as a Service) is a blockchain-based lending engine developed to modernize Islamic finance by addressing the inefficiencies of traditional Tawarruq-based models. Tawarruq, a common method for selling commodities for cash, typically involves intermediaries, delays, and high operational costs. IFaaS automates this process by integrating smart contracts and DeFi-based artificial intelligence (DeFAI) to streamline transactions, reduce processing times, and enforce real-time compliance with Shariah principles. This results in faster, transparent, and more cost-effective operations while strictly adhering to Islamic finance standards.

The platform enhances real-world asset (RWA) financing using AI algorithms to improve efficiency, reduce bottlenecks, and enable scalable lending services for financial institutions. IFaaS bridges the gap between conventional Islamic finance and decentralized technologies, offering a compliant and adaptable solution for institutions looking to modernize their lending practices. IFaaS provides a robust infrastructure for ethical commodity lending in a digital environment through its combination of blockchain transparency and automated compliance tools. ^{[3] [8]}

Amana Vaults

Amana Vaults are LibFi’s staking mechanism designed to merge decentralized finance (DeFi) with traditional financial systems in a Shariah-compliant and inclusive way. By staking $LIBFI tokens, users contribute to securing LibFi’s private chain and gain exposure to the platform’s broader financial operations.

The vaults support Islamic lending services, bridging conventional financial institutions like banks and peer-to-peer lenders with blockchain-based solutions. They enable capital to flow between traditional and decentralized systems while maintaining compliance with Islamic finance principles.

Amana Vaults' revenue-sharing model distributes up to 70% of net income from traditional and DeFi activities back to participants. This structure rewards users for their involvement and aligns incentives across the ecosystem. It also encourages ongoing engagement by linking user participation directly to platform success. Through this model, Amana Vaults promote financial inclusion and create a unified, ethical financial environment that integrates secure staking, compliant lending, and shared economic value. ^[9]

Firoza Finance

Firoza Finance, a joint venture between Liberty Finance and HAQQ Network, introduces the world’s first real-world Mudarabah smart contract, marking a significant development in Shariah-compliant decentralized finance. Through its pilot program, Firoza allows investors to pool crypto assets into three investment pools, with a combined Total Value Locked exceeding $2 million. These pools are designed to generate returns while contributing to Liberty Finance’s Amana Vaults. Operating on HAQQ Network’s blockchain and powered by Liberty Finance’s infrastructure, Firoza offers transparent, secure transactions with reduced operational overhead. This enables the platform to deliver affordable funding for borrowers, particularly small businesses and entrepreneurs, addressing the high costs and ethical limitations of traditional DeFi and conventional finance.

As LibFi’s Microfunding Engine, Firoza Finance is built on the Mudarabah model, a profit-sharing structure that pairs investors with entrepreneurs under pre-agreed terms, ensuring compliance with Islamic finance principles. By leveraging Decentralized Finance Artificial Intelligence (DeFAI), the platform automates borrower evaluation, risk assessment, and Shariah compliance. DeFAI analyzes key financial health and business viability metrics to match borrowers with suitable pools, balancing AI-driven precision with human oversight. Integrated with the LibFi DEX, Firoza provides liquidity options, allowing users to trade or exit positions. This blend of blockchain transparency and AI-powered decision-making positions Firoza Finance as a scalable, ethical, and inclusive solution for microfunding in underserved regions. ^{[4] [8] [10]}

LIBFI

The LIBFI token is the native asset of the LibFi ecosystem. Its utility spans governance, operations, and incentives across the platform. Holders of LIBFI participate in decentralized governance, voting on protocol upgrades, fee structures, and product additions. The token is also used for staking in Amana Vaults, allowing users to earn yield from platform revenues while supporting liquidity for services like the LibFi DEX and Firoza Finance.

Transaction fees across LibFi’s products are paid in LIBFI, with a portion burned to create deflationary pressure. The token also incentivizes users who engage in trading, lending, and liquidity provision, promoting ecosystem growth.

Additional functions include unlocking premium educational content on LibFi Academy and gaining priority features on Firoza Finance. LIBFI is also required to operate relayer and chain nodes, supporting network decentralization and scalability. The LIBFI token underpins the platform's functionality and sustainability through these multiple roles. ^[8]

Tokenomics

LIBFI has a total supply of 1B tokens and has the following distribution: ^{[7] [8]}

• DAO Foundation: 40%
• Team: 16.5%
• Seed/Presale/IDO: 12%
• Liquidity: 10%
• Airdrops & Community: 10%
• Advisors: 8.5%
• Contractor Options: 3%

Partnerships

• HAQQ Network
• IvoryPay
• Zokyo
• SynrgiseLearn