The Setheum: An Introduction

The Blockchain Network

Setheum is a DeFi operating system, liquidity exchange provider, and financial system that resolves around the issues of interest, liquidity and stablecoin reliability issues mostly raised by centralised stablecoins by creating algorithmic elastic stablecoins stabilised by prestine crypto assets and managed by the network’s Shari’ah backed governance system that gives back all upturn elasticity returns and market growth to the community and provides zero-interest loans for all muslims and non-muslims alike. Setheum is built with the Substrate modular interoperable blockchain framework and is based on the Nominated Proof of Stake (NPoS) consensus algorithm. In Setheum, one can pay for transaction fees in any token currency without having to hold Setheum’s native token. Setheum implements a free and fair economic system that pursues equality of opportunity and the maximisation of public utility in the crypto-economy.


The Inspiration behind Setheum was initially to provide an alternative payment system to the current FinTech atmosphere. To create a system that is bipartisan and open to the public providing an easy to use remittance network that is also easy to onboard, attractive for day-to-day spending and transparent. Something I could build an ecommerce platform on and use as the main payment option and a bridge between traditional finance and cryptocurrency in both low-level and high-level endpoints, especially in the less developed and developing parts of the world. Then I built the system on the foundation and principles of Islamic Finance in the Shari’ah to make it halal (permissible) to all muslims and beneficial to all muslims and non-muslims alike.


The motivation is to make it easier for the free-flow of capital internationally and intersystematically (interoperability between distinct systems/networks), to maximise capitalization and economic growth under the umbrella of the Shari’ah, realising that this is the solution for many of the problems challenging communities around the world, inequality in capital distribution and discrepancies in the free flow of capital between equality of opportunities and systematic fairness in capital distribution and financial regulations. Equality of opportunities cannot be achieved without the free-flow of capital, while there is no systematic fairness in the distribution of capital there can be no free-flow of capital in the hands of the public. In Setheum, the capital will be directed to the public for the public utility in the Setheum economy through various mechanisms including CashDrops, to be discussed further below, and the Setheum Public Fund also to be discussed further below.

Principles and Core Values

Setheum has a set of Principles and core values that shall not change or get corrupted in its underlying governance. Setheum is following the Islamic Finance principles and core values in compliance to the Shari’ah in respect to Economics, Monetary and Financial affairs.

Setheum Foundation & the SPF

The Setheum Foundation is the non-profit organisation that supports development and growth in the Setheum ecosystem. It supports projects and teams building on Setheum with financial grants, technical support, community partnerships and community support.
The Setheum Foundation stewards the Setheum Public Fund (SPF) that supports humanitarian and environmental causes to help the needy and underprivileged communities, minorities, orphans, physically challenged, the sick, refugees, and animals around the world. It focuses on funding NGOs, Public Health and Research Institutions around the world and communities in need to lessen the suffering felt by all kinds of people, communities, animals around the world and even ecological problems. The Setheum Foundation also supports R&D in blockchain tech, cryptography and computing for the common good of the public.

The Funds review:

  1. 1.
    Setheum Treasury: Supports the Network & Community et al. [OnChain]
  2. 2.
    Setheum Foundation Fund: Supports the Network, Project, Foundation & Community et al. [OffChain]
  3. 3.
    Setheum Public Fund: Supports communities in poverty, sickness, orphans, refugees, underprivileged communities, health research institutions, public good organisations, humanitarian NGOs, ecological research projects, history preservation projects, et al. [OffChain]

Setheum EVM (SEVM)

The Setheum EVM (SEVM) enables Solidity smart contracts to be deployed on the Setheum blockchain with minimum changes. It also offers many distinct features such as "bring your own gas" (paying fees in any tokens other than Setheum’s native token), and an on-chain automatic scheduler that enables use cases like subscription and recurring payments, microgas (paying very miniscule gas fees) etc.

Setheum Elastic Reserve Protocol (SERP)

The Setheum Elastic Reserve Protocol (SERP) is the backbone of the Setheum Economy, it is the stablecoin financial system of Setheum first of its kind and unique to Setheum.
The Serp implements algorithmically stabilised stablecoins that are serped or stabilised algorithmically with the Serp Reserve Assets called the “Serp and Dinar” which are a Tier-1 token class (free-floating cryptocurrency) on Setheum, sort of like the gold-standard but superior in technology and system utility, bilateral-backing (with SERP & DNAR) and a lot more. The SETR is automatically adjusted by the SERP-TES, while the SETUSD is adjusted by the SERP-SetMint based on CDPs (Collateralized Debt Positions).
When a Setheum StableCurrency goes higher than its peg in price (higher demand than supply), then that height in demand is injected into the economy to stabilise the price of that stablecurrency, we call that a SerpUp, the opposite is done for a SerpDown to Serp down the supply.

Stablecoin CDP Loans (SetMint)

Inspired by MakerDAO Protocol, the CDP (Collateralized Debt Position) protocol on Ethereum. The Setheum CDP has zero interest rates, zero stability fees, and is fully halal and collateralized. This differentiates SetMint from any other CDP Protocol, making it by far the only halal loan protocol in the entire industry. And it is Multi-Collateral.
Just reserve some collateral to mint some SETUSD, when returning the loan just return exactly what was loaned and unreserve the collateral with no fees and no interest.
This lets the muslim world also participate in the industry and take part in trading and yield making strategies that are within their dome of principles, for me this is a gamechanger that I wished was there for me, therefore I am building it for people like me who need it but haven’t been given the chance to be pleased by it, and also non-muslims that want to break-free from the interest-based alternatives to a more efficient system based on truth, fairness and equality.

SetSwap Built-In DEX

Inspired by Uniswap V2, Setheum has a built-in Decentralised Exchange that I like to call “SetSwap” (or SetheumSwap). In SetSwap there is what I call the EFE (Exchange Fee Evaluator) that is the first of its kind and unique to Setheum (one of the Setheum originals).
The EFE essentially lets available two types of Exchange fees, one for Tier-2 paired pools (LPs paired with at least one Setheum stablecurrency for example “BTC_SETUSD_LP”), then another fee structure for every other pool that is not a “T2-Paired-LP” on the DEX. Speaking of which, our user-friendly Mobile Wallet will be available soon where you could access Setheum’s DeFi features with a more beginner-friendly UI.

SetSwap EFE - Exchange Fee Evaluator

The EFE structure takes less fees from traders that swap with a “T2-Paired-LP'' than it takes from a “non-T2-Paired-LP'' (i.e. “BTC_DNAR_LP”). The difference between these fees is then paid to the pool by the SERP by issuing the T2-token to the pool to balance out the full Exchange Fee. This lets the traders pay less fees while the Liquidity Providers earn more.
This in turn attracts more traders, more trading volume, more liquidity, more market attractiveness, more trading opportunities and more natural economic growth based on market drive and demand, which in turn props the market value of the Serp and the Dinar and the entire Setheum tokens which in turn improves overall market performance and economic growth.
The initial Exchange Fees are as such, exchange fee is 0.3%, stablecurrency exchange fee is 0.1%, and the EFE (effect/difference) is 0.2%. They can be updated with governance through runtime upgrades.


First Things First, if something is not clearly permissible in the Shari’ah it cannot and will not be considered in Setheum. The Governance of Setheum is based on an on-chain governance mechanism that supports reasonable democratic approval processes for network runtime upgrades and on-chain parameter updates through extrinsics with governance approvals. There are 3 chambers, the Shura Council, the Financial Council, and the Technical Committee.

Staking: Nominating and Validating (NPoS)

Setheum uses a Nominated Proof of Stake (NPoS) mechanism to secure the network. Nominators will nominate validators to be in the active set of validators by staking their Setheum (SETM) with a validator(s). Validators will produce new blocks, validate blocks, and guarantee finality.
It is important to note that validators will only earn rewards if they have enough staked SETM to qualify to be in the active set. The active set will update every era, which is 2 hours on Setheum. Setheum is able to provide strong finality and availability guarantees with much fewer validators.
Therefore, Setheum uses NPoS to select validators from a smaller set, letting smaller holders nominate validators to run infrastructure while still claiming the rewards of the system, without running a node of their own. And so with Setheum able to stay alive even when most of the network goes offline, Setheum COULD be able to survive WWIII.
The Staking rewards range from a minimum of 2.58% to a maximum of 25.8%, ideal stake of 50%;

Airdrop Events and IAE

Setheum’s initial Token Offering will not be a traditional ICO, IEO or IDO. It will instead be an IAE, an Initial Airdrop Event that will take place on our Community Social Media outlets. In this event, we will give away some of the Initial Allocated Airdrop tokens as listed above in the Allocations tables, in an airdrop on Setheum to the participants of the IAE.
As for more Airdrop Events, stay close by and keep your eyes open for Setheum Airdrops of that specific allocation. There will be a referral program in each of the Airdrop Events. We will not require you to pay anything to join, it is absolutely free to join Airdrop Events.
The DEX Offering will be done as a liquidity provision to the SetSwap (Setheum’s built-in DEX), with SETUSD liquidity pairs. Users can buy the listed tokens (SETM, SERP, DNAR, SETR, SETUSD) on the SetSwap.
Beware of imposters, we will never ask for your private keys, or to send us funds, or contact you individually or send you DMs, and we will certainly not recommend that you use unknown and untrusted wallets.
So, keep in touch and wait for the IAE. We will announce it on our Social Media accounts. Follow us on the accounts on our website

Further Reading