In ten years of DeFi, the biggest absurdity is that so-called 'decentralized finance' can only over-collateralize.

You must have $100 of ETH to borrow $50 of stablecoins—this is not lending, but a liquidity staking game.

Huma Finance (HUMA) directly breaks this chain: It introduces future income streams as collateral, allowing ordinary people to access 70-90% of salary/invoice/remittance financing limits without locking up large amounts of crypto assets.

This means that DeFi has, for the first time, stepped out of the small circle of speculators and into genuine large-scale financial services.

1. The dilemma of over-collateralization

MakerDAO: ETH collateralization rate of 150%, lending efficiency is extremely low;

Aave: The collateral model has led to long-term low capital utilization rates;

Real issue: Ordinary people do not have enough crypto assets, making it impossible for DeFi to serve the majority.

2. Huma's revolutionary design

Collateral is no longer crypto tokens but future cash flows;

Huma's smart contracts automatically determine credit limits by analyzing cash flow, cycles, and stability;

Financing can reach 70-90% of future income, truly approaching the financing habits of real life.

3. Why is Huma a paradigm shift in DeFi?

From asset-driven → income-driven;

From on-chain rich games → global inclusive finance;

From the existing crypto market → a multi-trillion dollar market aimed at wage earners, freelancers, and cross-border traders.

4. Comparison with traditional lending

Banks: Complex approvals + reliance on credit scores + long processing times;

Huma: On-chain automatic execution + real-time discounting + globally accessible;

Essence: Transform Web2 credit scoring into Web3 smart contract risk control.

5. Impact on the competitive landscape of DeFi

MakerDAO / Aave = Asset collateral faction;

Huma Finance = Income collateral faction;

In the long run: Huma Finance's income-based collateral model may overtake the over-collateralized model because it is larger in scale, more efficient, and serves a broader audience.

Conclusion

Huma Finance (HUMA) is not just an improvement of DeFi lending, but the ender of the over-collateralization model.

HUMA makes DeFi truly accessible to ordinary users, making 'future income' a new asset class and opening the golden age of uncollateralized finance.

If MakerDAO is the starting point of DeFi, then Huma Finance is very likely the ultimate form of DeFi.