What is Huma Finance?
Huma Finance is a payment-driven finance (PayFi) network that aims to make global payment settlements available 24/7 using stablecoins and on-chain liquidity. It is used for cross-border payment settlement, trade financing, credit cards, and other DeFi applications.
It provides instant liquidity to financial institutions without relying on slow traditional systems like SWIFT or pre-funding. Settlement fees are usually between 6 to 10 basis points (bps) per day until the liquidity is returned, generating profits through repeated capital turnover.
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How does it work?
Permissionless: Anyone can participate as a liquidity provider (LP) and earn fixed returns in stablecoins along with token rewards (Huma Feathers), without the need for KYC/KYB, through the “Huma 2.0” release.
Two participation modes:
Classic Mode: Fixed yield + rewards.
Maxi Mode: Focuses on Huma Feathers rewards with higher returns.
Liquidity providers can choose to lock funds for 3 or 6 months to increase reward multipliers (Feather multipliers).
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Key Advantages
Based on real-world use cases: on-demand liquidity settlement, faster payments, trade financing, and more.
Stable returns backed by actual financial activity.
Strong backing from reputable institutions and solid partnerships.
An innovative model that combines payments and financing within the Web3 layer.