Huma Finance isn’t just another DeFi lending protocol it redefines the idea of collateral. Instead of requiring crypto collateral like most platforms, Huma lets individuals and businesses borrow against future income such as paychecks, invoices, remittances making DeFi accessible to millions who don't own crypto assets.
Founded in 2022 and backed by investors like Race Capital, Circle Ventures, ParaFi, and Distributed Global, Huma initially raised $8.3 million in seed funding to build its income-backed factoring protocol, incorporating launch partners like Circle, Request Network, and Superfluid.
Fast forward: Huma 2.0 launched on Solana in April 2025 as the first permissionless PayFi Network, offering stable double-digit USDC yields (~10.5% APY) a rare yield in crypto while also rewarding users with Huma “Feathers,” a reward point system.
Two modes stand out:
Classic Mode: Earns 10.5% USDC yield + base rate of Huma Feathers (multiplier increases with lock-up);
Maxi Mode: Focused on stacking Feathers, with earnings up to 5× base rate (without USDC yield).
The network isn't just theoretical it quickly attracted $25 million in deposits and onboarded over 33,000 users within weeks.
Huma also powers real-world payments and cross-border finance. Its “PayFi” model supports 24/7 settlements using stablecoins, enabling credit card remittances, trade finance, and new DeFi-native lending forms.
A major milestone: Huma raised $38 million in funding (including $10M equity and $28M in RWAs) to scale operations on Solana and Stellar’s Soroban. With partnerships like Arf, the platform enables tokenized real-world asset financing globally.
Huma’s impact spans $4.4 billion in processed PayFi transactions, empowering small businesses and underserved communities e.g., in Kenya and the Philippines with instant access to lending through partnerships like Jia.
In essence: Huma Finance pioneers a DeFi infrastructure where your income not crypto assets is the collateral. With innovative yield models, institutional backing, and real-world use cases, it’s building the future of inclusive finance.
