Zero-default on-chain credit, $HUMA reconstructs trust with technology

When @Huma Finance 🟣 announced the handling of $4.5 billion transactions with zero defaults, the entire industry was astonished — it’s important to note that the average bad debt rate for traditional microloans is as high as 5.7%. Behind this is a new type of trust system built on technology.

Traditional credit relies on collateral and manual reviews, while @Huma Finance 🟣 uses algorithms to see through the essence of cash flow. Its risk model analyzes the stability, frequency, and historical records of each income, assessing repayment ability with the precision of the most astute credit officer. In the Philippines, workers can obtain credit based solely on remittance records, with interest rates 68% lower than local banks, yet maintaining an extremely low default rate.

The $HUMA token is the value carrier of this trust system. As more businesses and individuals trust and use the platform, protocol revenue continues to grow, with 50% of revenue being repurchased and destroyed, creating a positive cycle of “the more widely used, the higher the value.” Token holders participate in governance through staking, allowing this trust mechanism to continuously optimize.

From order loans for garment factories to wage advances for cross-border workers, #HumaFinance provides new options for groups that previously could not access credit. This trust based on data and algorithms is more efficient and fair than the collateral model of traditional finance.

#HumaFinance has reconstructed credit trust with technology, and $HUMA serves as the value certificate of this new type of trust.