In the DeFi world, risk is often tied to price volatility. However, Huma takes a completely different approach—risk modeling based on future income. This means that the core variable of risk is no longer market conditions, but the reliability of cash flow.

Huma leverages smart contracts and on-chain data to track and calculate users' income curves in real-time, and utilizes algorithms for risk pricing. Traditional DeFi projects generally rely on collateral, but Huma depends on 'predictability of income' to reduce the probability of default. This enables Huma to serve those who may not have substantial assets but have stable income.

This method of risk modeling allows Huma to create a completely new credit rating system. Different income models will form differentiated risk profiles within Huma. For example, an employee with a stable salary and a freelancer with highly variable income will be assigned different lending parameters in Huma's risk engine.

What makes Huma unique is that it truly ties risk to cash flow. Compared to collateralized lending protocols on Ethereum, Huma is closer to the credit logic of the real financial world, while also avoiding information asymmetry and human manipulation through on-chain transparency and automation.

Huma is not imitating traditional finance; it is rewriting risk logic using on-chain rules. @Huma Finance 🟣 #HumaFinance $HUMA