Huma Finance is an innovative DeFi protocol focused on transforming the traditional accounts receivable financing market using blockchain technology. It provides small and medium-sized enterprises with fast invoice-based financing channels through a risk assessment model based on the credit of payers, composable credit NFTs, and smart contract automation, and offers salary advance services to individuals. Its core business is connecting borrowers with stable future cash flows to fund providers seeking stable returns, unlocking the value of real-world assets (RWA) on-chain, and enhancing financial efficiency and accessibility.
Risks to note:
1. Smart Contract Risk: Code vulnerabilities may lead to loss of funds.
2. Oracle Risk: Dependence on external data sources, errors or manipulation of data can affect risk assessment.
3. Payer Risk: Core dependence on the credit and repayment ability of the payer; defaults may lead to bad debts.
4. Regulatory Risk: The RWA and DeFi sectors face a constantly changing regulatory environment.
5. Market/Liquidity Risk: Volatility in the cryptocurrency market and changes in liquidity of funds pools may affect protocol operations.
@Huma Finance 🟣
