Imagine being able to borrow against your future income without needing any traditional asset collateral. Huma Finance is breaking the shackles of traditional finance through the PayFi network, providing a brand new way of borrowing for users worldwide. Unlike traditional crypto lending platforms, Huma Finance’s innovation lies in merging payment and financing infrastructure, creating a new credit model based on future income streams.
Future income streams as collateral: Completely overturning traditional lending models.
Unlike traditional lending methods backed by cryptocurrencies, Huma Finance's PayFi network allows users to use future income streams (such as salaries, invoices, or remittances) as collateral for unsecured lending. This groundbreaking innovation eliminates the reliance on physical assets or crypto assets in traditional lending, enabling more users, especially those lacking fixed assets, to participate in lending activities.
Time Value of Money (TVM) model: An efficient and flexible way of lending.
The Time Value of Money (TVM) model adopted by Huma Finance brings a new dimension to lending. Through precise analysis of cash flow patterns, the platform can instantly provide liquidity matching future income through smart contracts, typically amounting to 70-90% of expected income. This cash flow-based credit assessment enables borrowers to quickly obtain the funds they need without relying on traditional collateral, while also reducing risks and costs in the lending process.
Smart contracts and transparency: Bringing more security to lending.
Through smart contract technology, Huma Finance ensures the transparency and security of all lending processes. Every step from borrowing to repayment can be tracked in real-time on the blockchain, ensuring fairness and compliance in transactions. The instant execution of smart contracts significantly enhances lending efficiency, allowing users to obtain liquidity support without cumbersome approval processes.
Summary: Breaking financial barriers and reshaping the lending ecosystem.
With the launch of the PayFi network, Huma Finance is reshaping the boundaries between traditional finance and decentralized finance, allowing more people to borrow against future income without relying on any physical assets. This not only enhances financial inclusion but also brings more innovative opportunities to the decentralized finance (DeFi) sector, opening a new era of unsecured lending.
