HUMA Series (III): Innovative Practices in Unsecured Lending
In traditional finance, borrowing often requires cumbersome collateral and high-threshold credit assessments, which deters many small and medium-sized enterprises and individuals. Huma Finance (HUMA) has brought innovative practices in unsecured lending through the PayFi network, fundamentally changing this situation. Huma leverages blockchain technology to transform real-world income streams—such as salaries, invoices, or accounts receivable—into trusted on-chain assets, providing users with instant liquidity.
Huma's smart contracts can quickly assess a borrower's future income potential by analyzing cash flow patterns, and based on this, offer loans of up to 70-90% of expected income. This model does not require traditional collateral, significantly lowering the borrowing threshold. Whether it's a small e-commerce business needing quick capital turnover or a freelancer urgently requiring short-term cash flow, Huma can complete approval and disbursement in minutes, far exceeding traditional banks in efficiency.
More importantly, unsecured lending from $HUMA not only serves individuals and merchants but also injects new vitality into the global liquidity market. With the high-speed support of the Solana blockchain, Huma ensures the transparency and security of the lending process. Borrowers need not worry about high fees, and investors can achieve stable returns by providing liquidity. By 2024, Huma's transaction volume has surpassed $3.8 billion, demonstrating the immense potential of its model.
Huma's practices in unsecured lending are not only a technological breakthrough but also a redefinition of financial inclusion. It allows more people to participate in the global economy, opening a new chapter in the PayFi era.
