Multi-level permission management: Huma Finance has figured out how to install an 'intelligent control center' for DeFi!
Folks, if you want to thrive in the DeFi space for the long term, relying solely on high returns is not enough—governance structures are the 'stabilizing force' hidden behind the scenes! Huma Finance has directly established a 'multi-level permission management system', firmly securing system safety while clearly defining and managing power, setting a new benchmark for DeFi governance. After seeing all this, all I can say is: this operation is impressive!
At the protocol level: power is decentralized to avoid 'accidents', ensuring safety and efficiency.
Huma's top-level design exudes cleverness—the protocol owner holds the highest authority but is not a 'dictator'; instead, they have implemented multi-signature requirements. Simply put, 'major decisions need multiple approvals', which prevents the risk of 'one person ruining everything' and ensures that decisions are fully discussed beforehand.
These big shots have a lot of responsibilities: adjusting protocol configurations, appointing and dismissing liquidity pool leaders, starting and stopping protocols in emergencies, and even moving income from liquidity pools to the treasury. The most impressive part is that they have separated the 'protocol treasury' from the 'owner account'! It's like having a 'piggy bank' and a 'wallet' at home, each serving its purpose, preventing power from being concentrated in one person's hands, and ensuring better fund management—this move brings traditional financial risk control wisdom into DeFi, which experts have to commend as 'professional'!
Emergency response: Multiple 'safety valves' protect against sudden situations.
Who hasn't encountered the frustrating issue of system malfunctions? Huma has directly arranged for the role of **'Suspender'**, which is like the 'firefighter' of the DeFi world. Once they notice a security threat, such as someone trying to cause trouble or a system bug, the suspender can immediately hit the 'pause button', preventing funds from flowing out and keeping user assets secure!
Even more considerate, there’s not just one suspender; external security companies can also join in—it's like having multiple sets of eyes watching for risks, making it hard for any vulnerabilities to escape notice. However, since there’s a concern that someone might misuse the pause button, the rules are strict: only the protocol owner can lift the pause. This design of 'being able to stop urgently but not arbitrarily' balances safety and flexibility beautifully!
At the liquidity pool level: detailed money management ensures that efficiency and safety do not conflict.
At the 'money-making frontline' of the liquidity pool, Huma's management is meticulous to the core. Liquidity pool owners must first pass an 'interview' with the protocol owner before they can create and manage the liquidity pool: setting key parameters, selecting evaluators, and determining fee rules. If done well, they can also earn rewards from the liquidity pool's income.
Moreover, they also learned from top-level design and set up a separate 'treasury account' for liquidity pools, using power separately to reduce risk naturally. Underneath, there are liquidity pool operators acting as 'workers', responsible for KYC reviews, qualification certifications, and other miscellaneous tasks—interestingly, operator accounts do not require multiple signatures, as the tasks are execution-level and the risks are lower. This 'tailoring safety requirements to individuals' approach is quite precise!
Evaluator Agent: Professionals handle professional tasks, and they also stake their own money!
Loan approval is the most challenging task, and Huma brought in Evaluator Agents (EAs) to take the lead, with each liquidity pool assigned a dedicated EA, who is responsible for the approval process. If there’s a problem, it's easy to pinpoint who to hold accountable.
What's more flexible is that EAs can work fully automatically or manually intervene—simple loan applications are approved in seconds by machines, while complex cases are handled by humans, ensuring both efficiency and accuracy. But becoming an EA is not that easy; one must invest their own money into the liquidity pool! It's like 'putting skin in the game'; if they make a mistake, it's their own money that suffers. This operation directly heightens the sense of responsibility for EAs—who would dare be careless?
Dynamic adjustment: Smooth transitions without accidents, seamless handover between old and new.
For the system to develop, personnel must flow, but Huma has long had a 'handover plan' in place. Do liquidity pool owners want to change EA? Sure, but the new EA must first invest money to ensure they can perform well after taking over, without delaying the liquidity pool's operations.
The old EA doesn't feel wronged when they leave; upon changing positions, all rewards are settled immediately, the money is in place, and the new EA can start fresh without worrying about how to settle 'old accounts'—this handover process is smoother than the HR management of many companies!
Participants' rights: lenders and borrowers must be clearly organized.
What we ordinary people care about most is our own money! Lenders invest money into the liquidity pool, and earnings are distributed according to contribution ratios, clear and straightforward with no tricks, so they're naturally willing to put their money in; borrowers can get money as long as they pass the EA's review, but they must repay interest according to the rules, and some liquidity pools even require a portion of principal repayment each period—both parties' rights and responsibilities are clear, making cooperation reliable.
This wave of innovation has taught the DeFi community a lesson!
Huma's multi-layer governance essentially combines 'the risk control capabilities of traditional finance with the transparency advantages of blockchain', preserving the decentralized spirit while solving operational issues.
It's not just that Huma is impressive; it sets an example for the entire DeFi space—there will likely be more projects adopting this model in the future, making DeFi more professional and reliable. All I can say is that Huma has opened up a new perspective!
@Huma Finance 🟣 🟣 #HumaFinance $HUMA
