#humafinance @Huma Finance đŁ Huma Finance is an innovative project that aims to revolutionize global payments and financing by bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi). It positions itself as the first "PayFi" (Payment Finance) network.
Hereâs how Huma Finance works, broken down into several key aspects:
1. The Concept of PayFi:
Huma Finance is not just a classic DeFi protocol. It focuses on "Payment Financing", which means financing based on real income streams and receivables. This allows for instant liquidity to payments that, in traditional finance, can take time.
2. The Technological Infrastructure (PayFi Stack):
Huma Finance is built on a six-layer modular architecture, called the "PayFi Stack", which integrates different technologies for optimal operation:
* Transaction Layer: Relies on high-performance blockchains like Solana and Stellar for fast and low-cost transactions.
* Currency Layer: Uses stablecoins (like USDC) to minimize exchange rate volatility and ensure stable value transfers.
* Custody Layer: Manages assets securely through technologies like multiparty computation (MPC) and smart contracts.
* Compliance Layer: Integrates on-chain identity mechanisms to comply with global regulations, including AML (Anti-Money Laundering) controls.
* Financing Layer: This is where Huma's innovations manifest. It allows for the tokenization of receivables (like customer invoices) and obtaining loans based on these assets through decentralized liquidity pools. Risk management is integrated via smart contracts.
* Applications Layer: Facilitates the creation of complex financial products and user-friendly applications for developers and users.$HUMA
