#HumaFinance @humafinance

Let's discuss Huma's business model in detail to truly validate our own investment research judgments. Is Huma's operating model sustainable? How does Huma make money? What are the risk points for Huma? To answer these questions, we need to understand what Huma really is. In simple terms, Huma is a lending platform, but unlike on-chain lending platforms like AAVE, where both lending and borrowing occur among on-chain users, Huma targets ordinary on-chain users for lending, while the borrowing side consists of real-world enterprises. This is why it is said that Huma is actually a RWA (Real World Asset) project, encapsulating real-world assets into on-chain assets, allowing any user to participate without permission or KYC. We can see that the key lies in the asset side; whether the enterprises borrowing money are reliable, whether there are bad debts, and whether the platform can effectively manage risks. Previously, industry leader Feng Wu raised concerns that Huma operates on a P2P model, which may carry significant risks of collapse.