#HumaFinance ) is a decentralized finance (DeFi) protocol aimed at **bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi)**, by focusing on **lending and credit based on future income or illiquid assets.**
**The core idea of HumaFinance:**
Many DeFi protocols focus on over-collateralized lending, where borrowers must provide collateral worth more than the loan they are receiving. This limits access to credit.
HumaFinance seeks to provide more flexible financing solutions through:
**Future Income-Backed Loans:**
* Imagine you have a job contract that guarantees you future income (like monthly salaries or payments from freelance contracts).
* HumaFinance can allow you to obtain a loan now based on this expected future income, without the need for huge collateral.
* This is typically done by "tokenizing" this future income or claims to it, making it tradable or usable as collateral.
**Illiquid Asset Financing:**
* Many assets in the real world (like real estate, intellectual property rights, outstanding invoices) are "illiquid", meaning they cannot be easily converted to cash.
* HumaFinance aims to provide ways to finance these assets by tokenizing them (converting them into NFTs or other tokens)@Huma Finance 🟣