Can you believe it? Someone borrowed money without ever buying Bitcoin or hoarding Ethereum, just based on their paycheck for next month, with a few taps on their phone!
1.7 billion people globally without bank accounts, previously losing 6% in fees for cross-border transfers and waiting 3 days for funds, now with Huma's 'PayFi', funds arrive in a second and cost almost nothing! Even more impressive, it has lent $4.5 billion with no defaults!
Don't think this is a game for financial tycoons; even if you know nothing about blockchain, you can understand after reading: how does this turn ordinary people's salaries and invoices into 'liquid cash' that can be spent anytime? It's Huma!
1. What is @Huma Finance 🟣 ?
The world's first PayFi network, established in 2022, combining payment and financing functions, lending based on future income streams (alternative to crypto collateral), deployed on chains such as Solana and Stellar, processing over $4.5 billion in transactions by May 2025, with a zero default rate and an annual income of $9 million.
2. Core concepts of the PayFi network
Solving traditional payment issues such as high fees (average 6.35%), slow settlements (3-5 days), liquidity lock-up ($40 trillion), and financial exclusion (1.7 billion people without banking services) through income-based lending (70-90% expected income), TVM model assessment, stablecoin real-time settlement, and decentralized architecture.
3. How it works
- Six-layer PayFi Stack: Transactions (high throughput chain), Currency (stablecoin), Custody (institutional-level collaboration), Financing (core credit assessment), Compliance (AML collaboration), Applications (multi-scenario support).
- Upgrading from V1 (income lending, signal processor) to V2 (global PayFi network, complex financial structures, RWA tokenization, cross-chain expansion).
- Capital flow: Users deposit → deploy to PayFi assets/liquidity pools, LPs can earn 10.5%-17.5% returns.
4. Core functions and products
- Huma Institutional: A permissioned platform for institutions, compliant credit opportunities.
- Huma 2.0: Solana permissionless platform, integrating multiple protocols, supporting real payment stream income.
- PST: A tradable token based on Solana, representing LP investment positions.
- $HUMA: Total supply of 10 billion, used for governance, rewards, ecosystem, with an initial circulation of 17.33%, allocation covering liquidity incentives (31%), investors (20.6%), etc.
5. Main use cases
Cross-border payment financing, accounts receivable financing, salary advances, SME trade financing, credit card T+0 settlement, etc.
6. Key achievements and data
- Transaction volume exceeds $4.5 billion, zero defaults, annual income of $9 million.
- After the launch of $HUMA 2.0, user deposits increased 9 times in a month, active liquidity reached $103 million, and users exceeded 54,000.
- Financing of $46.3 million (seed round of $8.3 million + $38 million), investors include Distributed Global and others, collaborating with Solana, Circle, etc.
- Deployed on 3 chains, planning to expand to Polygon and others.
7. Advantages and innovations
- Financial inclusivity: Serving users without crypto assets but with cash flow.
- Capital efficiency: Annual cycles dozens of times, returns 10.5%+.
- Transparent automation: Smart contracts reduce costs and improve efficiency.
- RWA integration: Tokenized accounts receivable, targeting a $30 trillion market.
- Zero default rate: Advanced risk models ensure safety.
9. Future outlook
Cross-chain expansion to Polygon and others; launching the Huma Foundation (DAO governance); hosting the PayFi Summit; expanding into emerging markets like Kenya and the Philippines. #humafinance
