DeFi protocol for income and receivables: Huma allows the use of future revenues—like salaries and bills—as collateral for decentralized financing, instead of solely relying on crypto assets.
Describes itself as the world's first 'PayFi' network, enabling institutions and individuals to obtain instant liquidity in stablecoins like USDC/USDT.
🎯 Business Model – PayFi
Real revenues (such as bills or salaries) are tokenized and entered onto the blockchain, and are used as collateral for credit.
Lenders on the blockchain fund liquidity, while borrowers provide liquidity in exchange for fees and interest, partially distributed to them and HUMA holders.
50% of borrowing fees are used to buy and burn HUMA tokens, supporting demand effectiveness and token scarcity.
🛠️ Features and Concepts
Greater access for non-banking categories: enabling income-based financing for users in emerging markets in transparent and fast ways.
Stable returns: generated from real economic activity, which typically leads to consistent returns exceeding 10% annually for liquidity providers.
Supports institutions like Solana and Stellar, with funding partnerships with Circle, Galaxy Digital, and others.
💰 Funding and Expansion
Raised $8.3 million in a Seed funding round in February 2023 led by Race Capital and Distributed Global.
In September 2024, raised $38 million in a Series A round along with a merger with Arf to expand real asset-backed liquidity services.
🌐 Recent Updates
Launched Huma 2.0 on the Solana network to expand the user base, while the institutional part of the protocol continued under the name 'Huma Institutional'.
So far, the protocol has achieved over $3.8 billion in transaction volume with 0% default cases to date.
🧩 Summary
Huma Finance is an innovative decentralized financing platform that relies on real revenues as collateral, aimed at businesses and individuals in emerging markets. The platform combines blockchain technologies, stablecoins, and income mining mechanisms to provide instant liquidity, attractive returns for funders, and an easily scalable infrastructure.