In fact, when most people mention DeFi lending, they think of over-collateralization: it is safe, but the capital efficiency is low, and the business scenarios are limited. Huma Finance wants to take a different path, emphasizing 'cash flow-driven credit.' Simply put, it is about looking at verifiable business data such as a company's actual income, accounts receivable, and cash flow records to issue credit limits, rather than relying on the price fluctuations of volatile assets.
The key to the risk control logic lies in:
Data on-chain: Key nodes such as payments, profit distribution, and collections are recorded on the chain with evidence and traces. This way, it is clear whether the cash flow has occurred.
Automatic recovery: The accounts receivable collection path is written into the contract in advance, and repayment is made upon receipt, avoiding 'extended payment terms' or human delays, significantly reducing bad debt risk.
Transparent billing: Rates, profit-sharing, and incentives are all publicly written on the chain, leaving no black box, and third-party audits can verify this.
The actual significance for the team is simple: do not just shout the slogan of 'credit,' but prioritize risk control parameters. Define data quality standards, abnormal thresholds, and even manual fallback processes before going live. After going live, focus on three indicators: overdue rate, bad debt rate, and capital turnover days. If these indicators are significantly better under Huma's model compared to traditional methods, it would indicate that its credit model is valuable.
Stablecoins here act more like underlying 'gears,' providing settlement and circulation, while the real moat is risk control + credit data. As long as these can be captured, the platform can operate steadily and last longer. This is a good thing for the platform.
@Huma Finance 🟣 #HumaFinance $HUMA
