Many people call @humafinance PayFi PayFi

Including the recent airdrop shares promised through collaboration with Kaito, Huma has greatly ignited everyone's attention on the PayFi track.

However, I still ask everyone to first understand the differences between various types of projects within the PayFi track; I even feel that these projects are theoretically not in the same track.

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1⃣ Payment projects that connect crypto assets with real-world consumption

This is easy to understand, as it supports users to complete traditional consumption in the real world using crypto assets. For example, all U-card projects such as @0xinfini, Bybit's U-card, Bitget/Morph's U-card, etc.

The core of these projects still relies on deposit attraction + asset management + trading fees for profit, and generally, the expectation for issuing tokens is not strong.

The core difficulty of these projects lies in the clearing and compliance issues of on-chain assets and the off-chain banking system in the payment process.

2⃣ Pure cryptocurrency payment

This is something many people use, in fact, all CEX internal transfers, Binance Pay, OKX Pay.

Even all on-chain stablecoin projects can be considered part of this track.

Because the cryptocurrency transfers made between individuals for trading/payment purposes are primarily based on stablecoins.

The core of these projects lies in the convenience of transfers between both parties, as well as the construction of social scenarios based on these payment relationships.

3⃣ Projects like @humafinance that profit from cross-border payment settlements

In theory, this has nothing to do with ordinary payments and should be classified more as part of the ceDeFi track.

It relies on fundraising from on-chain projects, then operates in a more centralized manner, with most of the funds used to profit in off-chain scenarios.

This kind of project should actually be considered in the same track as @ethena_labs; it’s just that they have different means of profit after acquiring funds. It really has little to do with PayFi itself.