Huma Finance (HUMA) is a project that goes beyond traditional DeFi. Its goal is to create the world's first PayFi network that combines 'payment + finance' and focuses on real cash flows. Instead of exclusively focusing on speculative assets, HUMA aims to create a space where crypto financing will be accessible to real businesses.
From DeFi to PayFi: what’s the difference?
Traditional DeFi (decentralized finance) has revolutionized the financial world but often remains detached from the real economy. Its core activities focus on lending, borrowing, and exchanging crypto assets.
HUMA offers a new concept – PayFi (Payment + Finance). This model connects crypto financing with real-world transactions. It allows businesses with real cash flows to access funding by using their future revenues as collateral.
How does it work? Credit against future revenues
The core idea of Huma Finance is the possibility of financing based on future cash flows.
Here’s how it works in practice:
Need for liquidity: a company (for example, one that provides subscription-based services, or an app developer generating revenue from ads) needs quick financing for expansion.
Collateral: instead of providing physical assets as collateral, the company uses its future incoming payments.
Huma Finance: the platform tokenizes these future revenues.
Investors: investors fund these tokenized revenues and profit when the company repays the debt.
This approach solves the problem faced by many businesses: they don’t have to wait for money to arrive; they can get funding when it’s needed.
Use cases of HUMA
Huma Finance can be beneficial for a wide range of business models:
Subscription-based companies: platforms that receive regular monthly or annual payments from customers can use these future revenues as collateral.
App developers: companies whose revenues come from ad networks can obtain quick funding without waiting for ad platforms to pay out.
Online marketplaces: sellers on large platforms who receive income after a certain delay can access capital immediately.
Why is this important?
The Huma Finance project opens a new chapter in the development of DeFi, making it more inclusive and practical. By integrating crypto financing into the real economy, HUMA promotes the decentralization of lending and makes it accessible to more entrepreneurs.
Instead of being an ecosystem that exists parallel to the traditional financial system, HUMA aims to complement it.
Do you see a future where PayFi networks become the primary source of funding for small and medium-sized enterprises?
