Huma Finance (HUMA) is a DeFi protocol built with the goal of redefining finance based on cash flow rather than solely relying on collateral. While many traditional crypto lending platforms require on-chain assets like ETH or BTC for collateral, Huma allows users and businesses to leverage revenue, invoices, or future income as a basis for borrowing.
A standout feature of Huma is its ability to connect Web3 with real life: freelancers, startups, or small to medium-sized enterprises can access capital quickly and transparently without facing barriers from banks. This is an important step for DeFi to move beyond the narrative of 'digital assets' and expand into RWA (Real World Assets).
The HUMA token plays a central role in the ecosystem: it is used for staking, governance of the protocol, and incentivizing liquidity. HUMA holders can participate in shaping the long-term development of the project.
In the wave of DeFi 2.0 and RWA, Huma Finance is emerging as a potential piece of the puzzle, helping to bring decentralized finance closer to practical application.