Why is #Huma called the 'credit card of the crypto world'? You'll understand after reading this.
When it comes to crypto lending, many people think of 'collateralizing a bunch of coins, while worrying about price drops leading to liquidation,' but @Huma Finance 🟣 is creating a 'credit card of the crypto world'—no collateral needed, you can borrow based on income, and the more you repay, the better your credit gets.
This 'credit card' has a very practical limit: based on the stability of your income, the higher your salary and the more regular your repayments, the higher the limit, up to 90% of your monthly income. Repayments are also flexible like a credit card, supporting daily interest calculations, with automatic deductions on payday, so you don't have to worry about forgetting repayments affecting your credit. It’s even more like 'credit accumulation': repaying on time can increase your limit and reduce your interest rate, just like how good use of a credit card can lead to higher limits; here, every time you keep your promise, you will be 'rewarded.'
But it’s more flexible than traditional credit cards: there is no physical card, you can borrow with just a few taps on your phone; the limit can be reused, and it instantly resets after repayment; the funds arrive in USDC, which can be used directly in the crypto world or quickly converted to fiat currency, without any restrictions on consumption scenarios. A freelance designer said: 'In the past, I needed to advance material costs for big orders, and my credit card limit wasn’t enough, but I borrowed 30,000 from Huma based on my past income, and after completing the project and receiving payment, I just repaid it, with interest only a few hundred, much more convenient than borrowing from friends.'
$HUMA tokens are the 'points' for this 'credit card': staking tokens can unlock higher privileges, such as interest-free months on your birthday, temporary limit doubling, etc. Here, credit is no longer just a cold number in the banking system, but a tangible 'pass' in the crypto world. $HUMA is proving that good financial tools should be as widely available as credit cards, but understand your real needs even better than credit cards.
