Why is #Huma called the "credit card of the crypto world"? Here's the core logic.
When it comes to crypto lending, most people's first reaction is to "mortgage cryptocurrency and worry about being liquidated due to price fluctuations." However, #HumaFinance is building a "crypto credit card" that truly meets the needs of ordinary people—no assets required for collateralization; you can borrow money based solely on your income. And the more trustworthy you are, the higher your credit rating.
The credit limit design of this "credit card" is very pragmatic: the system dynamically assesses your income stability. The more stable your salary and the more regular your payments, the higher your loan limit, up to 90% of your monthly income. The repayment mechanism is similar to that of an everyday credit card: interest is calculated daily, and automatic deductions are made on payday, preventing credit history from being affected by forgotten payments. More crucially, the "credit accumulation" mechanism: every on-time payment is recorded, leading to not only a gradual increase in your credit limit but also a reduction in interest rate. Just like the "use it well, increase your limit" approach with traditional credit cards, here, every fulfillment of your obligations translates into tangible benefits.
However, compared to traditional credit cards, it offers superior flexibility: the entire process is online, with no physical card required, and loans can be completed in minutes on your phone. The credit limit is revolving and instantly restored upon repayment, making capital turnover more efficient. The USDC received can be used directly within the crypto ecosystem and quickly converted to fiat, with no spending restrictions. As one freelance designer explained: "I needed to advance material costs for a large order, but my credit card limit wasn't enough. So, I borrowed 30,000 yuan through Huma using my past income. I paid it back immediately after the project received funding, and the interest was only a few hundred yuan. It was much more convenient and comfortable than hiring someone to borrow money."
The $HUMA token is like the "points system" of this "credit card": staking tokens unlocks additional benefits, such as interest rate discounts and temporary credit limit increases, allowing users with good credit to enjoy even greater benefits.
It truly enables even those without crypto assets to enjoy the convenience of crypto finance, making "earning ability" the most reliable credential of credit. This is perhaps the core reason why Huma is known as the "credit card of the crypto world"—it's as accessible as a credit card, yet better understands real financial needs.
