KUMA SC: A New Verticale for the KUMA Protocol with Islamic Bonds
1/ New Era for the Kuma Protocol
Since our inception, we have implemented innovative, regulated practices to grant a wide array of users access to the exciting world of DeFi. The introduction of KUMA SC (Shariah-compliant) is a significant addition to our protocol, enabling greater inclusivity and diversification. This new addition welcomes all users, regardless of their ethical beliefs, to take advantage of Islamic Bonds, which at their core, are interest-bearing obligations offering compelling returns.
2/ Why Islamic Bonds?
Sukuk, or Islamic Bonds, are financial instruments that adhere to Islamic finance principles, prohibiting interest (Riba) and encouraging investments based on real assets. These bonds, unlike conventional ones, generate returns based on a mutually beneficial investment agreement.
3/ The stability and liquidity of countries issuing Islamic bonds
The MENA countries such as the United Arab Emirates, Saudi Arabia, Bahrain or Qatar are recognized for their financial and political robustness, making investments in Islamic Bonds safe and reliable. Many countries in the MENA & APAC region have diversified economies, rich in natural resources, and benefiting from a mature financial sector. These factors contribute to the stability of Islamic Bonds’ returns and minimize risk for our users. Moreover, the MENA & APAC region has a long history of trade and finance, ensuring robust liquidity for investors in Islamic Bonds.
4/ Regulatory framework compliance
KUMA Shariah Compliant not only adheres to Shariah rules but also to the financial regulations and, thereby ensuring investors’ confidence. The Islamic Bonds will benefit from the same legal framework as all other KUMA bonds. This legal structure is the result of two years of rigorous work and collaboration with government officials, industry experts, and regulators across different jurisdictions. Mimo Capital AG, The NFT bonds issued by Mimo AG CAPITAL, are compatible with the Kuma Protocol, thus, users can swap their NFT against KIBTS, enjoy the yield and even compose with it in the DEFI World.
5/ The Benefits of KUMA Islamic Bonds
KUMA SC is a significant step towards building a strong bridge between the traditional world of Islamic finance and the burgeoning world of DeFi. Here are some of the advantages this new iteration offers:
- Inclusivity: KUMA SC grants access to Muslims and other users interested in Islamic finance to a range of new products, allowing us to diversify and broaden our user base.
- Stability: The Islamic Bonds originate from countries with strong credit ratings, considered low-volatility assets.
- Liquidity: Like all KUMA tokens, KUMA sc* tokens will easily be buyable and sold on any decentralized application, thus guaranteeing better liquidity for users.
Conclusion:
The introduction of KUMA SC is a major step in our goal of making DeFi accessible to all. We’re thrilled about this expansion and look forward to continuing to explore other opportunities to diversify and enhance our platform.
We eagerly anticipate seeing how the market will react to this new asset class and are confident that KUMA SC will add significant value to the overall DeFi ecosystem.
