HuMa (Huma Finance) is a cryptocurrency and protocol that seeks to unite traditional finance with decentralized finance. Its main objective is to offer fairer and more accessible loans, especially for people like freelancers and small businesses that do not have a traditional credit history.
How does it work?
Instead of relying on asset collateral, Huma Finance allows users to borrow against their verified future income, such as work contracts or invoices. Creditworthiness is determined through financial behavior on the blockchain, creating a more transparent rating system.
Additionally, HuMa is an open protocol, meaning that other developers can create applications on top of it. Those who hold the HUMA token have governance rights, allowing them to vote on important protocol decisions. They can also stake their HUMA tokens to earn rewards.
Why is it important?
HuMa is built on blockchain technology, which allows it to be decentralized, eliminating intermediaries and reducing costs. It also offers transparency and immutability in transactions and uses smart contracts to automate loans.
In summary, HuMa was born with the idea of democratizing access to credit, using blockchain technology to build a more inclusive and efficient financial system, based on the potential of future income as collateral.
