To truly understand how Huma Finance is revolutionizing global payments, one must look beyond the surface and examine its core architecture: the PayFi Stack. Inspired by the internet's layered OSI model, this modular six layer framework provides a standardized, open structure for building financial applications on the blockchain. It is the engine that enables everything from instant cross border settlement to innovative DePIN financing, creating a system that is fast, programmable, and borderless.
The foundation of the stack is the Transaction Layer. This consists of high performance Layer 1 and Layer 2 blockchains, like Solana, chosen for their high throughput, low latency, and minimal transaction costs, which are essential for handling the massive volume of payment transactions. Built on this is the Currency Layer, which leverages stablecoins like USDC to provide price stability and act as the primary medium of exchange, mitigating the volatility of traditional cryptocurrencies. The third layer, the Custody Layer, utilizes institutional grade solutions like multi party computation (MPC) wallets to securely manage assets, enabling multiple parties to control funds in real time without sacrificing security, a key component for achieving T+0 settlement.
The upper layers are where the unique logic of @Huma Finance 🟣 comes into play. The Compliance Layer integrates tools for regulatory adherence, ensuring the protocol can operate within global financial frameworks. The Financing Layer is the heart of the protocol, containing the smart contract logic for risk management, underwriting, and the creation of Huma's diverse credit pools. Finally, the Application Layer is where the technology meets the real world. This is where partners build specific use cases, such as Arf's cross border payment financing or Rain's stablecoin backed card settlements, on top of the underlying infrastructure. This modular design allows for immense flexibility and scalability, positioning the $HUMA token and its ecosystem as the central hub for a new generation of financial services. The value of $$HUMA rows as more applications are built on this powerful stack, driving demand for its governance and utility functions. The $HUMA token is integral to this entire structure. #HumaFinance
