centralized protocol designed to integrate real-world income and receivables onto the blockchain, enabling users to access credit based on their projected income rather than solely on crypto assets. It aims to facilitate instant, low-cost global payments by leveraging stablecoins and on-chain liquidity, effectively bypassing traditional systems like SWIFT. Huma Finance is considered a "PayFi" network, merging traditional and decentralized finance.
Here's a more detailed look:
Income-based lending:
Huma Finance allows individuals and businesses to use future income streams, such as salaries, invoices, or remittances, as collateral for loans.
Decentralized and transparent:
The protocol utilizes on-chain underwriting and programmable payments, ensuring transparency and security in the lending process.
Global payment solutions:
Huma Finance provides a platform for on-demand liquidity to financial institutions, enabling faster and more efficient cross-border payments and supply chain financing.
$HUMA token:
Huma Finance utilizes the $HUMA token, which serves as a utility and governance token within the protocol, facilitating various functions like liquidity provision rewards, ecosystem growth incentives, and access to advanced features.
Real-world applications:
Huma Finance can be applied to various scenarios, including cross-border lending based on remittances, converting unpaid invoices into liquidity for small businesses, and facilitating early wage advances for employees.
