When real estate, cars, and paychecks become collateral
Borrowing makes more people feel extremely uncomfortable
But there's no need to panic, nor to despair
Huma Finance is redefining the essence of borrowing
In the predicament of traditional crypto lending relying on over-collateralization, Huma Finance has opened a new path—it allows users to obtain instant liquidity based on future predictable income streams (such as salaries, accounts receivable, or cross-border remittances). This model, known as PayFi, transforms real-world cash flows into on-chain credit capital for the first time.
Core Mechanism: Quantification of Time Value
- Dynamic Credit Model: The protocol can advance 70%-90% of that cash flow based on analyzing historical income data (such as records of salary payments for six consecutive months), with a maximum limit of $100,000;
- Unsecured Lending: Unlike cryptocurrency collateralized lending, Huma only requires linking a bank account or payment platform (such as PayPal, Stripe) as repayment assurance;
- Real-time Risk Control: If there are anomalies in the linked account's incoming payments, the system automatically suspends the credit limit, maintaining a bad debt rate below 0.8%.
Implementation Scenarios and Progress
▸ Has covered three major scenarios: salary advances, small and medium-sized enterprise invoice discounting, and project payment prepayment for freelancers;
▸ Integrated with Circle's cross-border payment network, supporting credit issuance in fiat currencies such as USD and EUR;
▸ In six months, facilitated $170 million in loans, with an average approval time of 37 seconds and a user re-borrowing rate of 83%.
This is not just a technological experiment, but an evolution of financial logic
Huma has thawed the trillion-dollar liquidity hidden beneath the glacier of “future income” with smart contracts, allowing a paycheck to activate credit, and lending has finally returned to trust in the “person” itself.
