@Huma Finance 🟣 It creates something entirely different from typical crypto lending systems. Instead of requiring users to lock tokens as collateral, Huma Finance opens a new category called PayFi—which is a blend of payments and financing that uses real-world income as its basis.
Here’s why it’s important: Most people in the world can’t use DeFi lending because they don’t have enough crypto assets. Huma Finance solves this problem by allowing borrowing against future income streams like salaries, bills, or remittances. In short, you can use what you will earn tomorrow to get the money you need today.
This system operates through the time value of money (TVM) model, a principle used in traditional finance for decades. By analyzing cash flow patterns, the protocol can provide 70-90% of liquidity from expected revenues immediately and securely through smart contracts. This means access to capital quickly without relying on central banks or lenders.
For businesses, this creates a new way to manage working capital. For individuals, it opens the field of unsecured lending in a safe and transparent manner. For the blockchain system, it bridges the gap between real-world receivables and on-chain liquidity.
HUMA is a central currency in this network, supporting governance and utility. As the PayFi sector expands, Huma Finance could become a leader in linking income-based lending with blockchain innovation.
Owning HUMA is not just about investing in another DeFi token. It’s about being part of a system that builds real utility for millions of people.
