How does Huma verify borrowers and maintain network security?
Huma Finance combines the flexibility of DeFi with the reliability of traditional finance. One of the key elements is the KYC/AML and income verification process.
🔹 Distribution partners perform KYC for each borrower, verifying documents, identity, and compliance with regulatory requirements.
🔹 Additionally, APIs from payment platforms and banks are connected to confirm real sources of income.
🔹 Verified data is transmitted in on-chain format — smart contracts can automatically approve or reject applications without human intervention.
The result is the minimization of fraud risk and stable payouts for investors. This is one of the steps that makes PayFi a mature model for mass adoption.
Tomorrow we will talk about the role of stablecoins in Huma and why they are the foundation of this ecosystem.