# Islamic DeFi 2024: Key Milestones and Where We Are

## Introduction: A Pivotal Year for Islamic Decentralized Finance

2024 has seen transformative developments in Islamic decentralized finance (DeFi). The traditional Islamic finance market has reached ~$4 trillion, while Sharia-compliant DeFi solutions are gaining traction. Although conventional Islamic finance still dominates, the shift towards decentralization is a quantum leap for a community of ~1.9 billion Muslims seeking ethical alternatives. This article explores the key milestones of the year and where we stand now.

## Infrastructure Growth: Base as a Hub for Islamic Finance

One major milestone is the rise of platforms like 'Qist' on Base, a Layer-2 Ethereum network offering low fees and high speed. This infrastructure enables Islamic applications using smart contracts that adhere to Murabahah and Qist principles: the seller owns the asset, payments are in USDC, and there is no Riba or Gharar. Full transparency is ensured via BaseScan, building trust in a system designed for ~1.9 billion Muslims.

## Innovation in Financial Instruments: Digital Murabahah and Qist

This year saw progress in tools like 'digital Murabahah' and 'Qist', where an asset is purchased and sold on credit, with surplus returned to the buyer upon early repayment. This aligns with the prohibition of Riba and Gharar. A 3-day grace period is offered for late payers, promoting social justice. The platform fee is only 2%, much lower than traditional rates, making it attractive for users.

## Sharia Compliance and Transparency: Open Contracts and Auditing

Applications like Qist use open-source smart contracts audited on BaseScan, allowing anyone to verify Sharia compliance. This transparency builds trust in a system serving ~1.9 billion Muslims. The use of USDC ensures price stability and reduces prohibited speculation. This model may pave the way for broader adoption by traditional Islamic financial institutions.

## How Qist Implements That

Qist is a decentralized Islamic finance platform on Base, following these principles: the seller owns the asset, payment in USDC, no Riba/Gharar, surplus returned for early payment, and a 3-day grace period. The open contract is audited on BaseScan, with a 2% fee. Qist aims to bridge traditional Islamic finance and DeFi, enabling over 1.9 billion Muslims to access Sharia-compliant services in a decentralized environment.