In today's rapidly developing fintech landscape, the limitations of traditional financial systems are increasingly prominent, especially in the fields of payments and financing, where inefficiency, high costs, and lack of inclusivity are urgent issues needing resolution. Huma Finance (HUMA) has emerged as the builder of the world's first PayFi network, bringing unprecedented changes to the global financial market with its innovative concepts and technologies.
The dilemmas of traditional lending models and Huma's innovative breakthroughs
Traditional lending models have long relied on collateral, making it challenging for individuals and small to medium-sized enterprises lacking fixed assets to obtain funding support. In scenarios like cross-border payments and trade financing, traditional models face long settlement cycles, high fees, and lack of transparency. Traditional lending supported by cryptocurrencies has significant value volatility, making it difficult to effectively control lending risks; both borrowers and lenders face enormous uncertainties.
Huma Finance breaks this traditional shackles, allowing users to borrow against future income streams, such as salaries, invoices, or remittances. The core of this innovative model is the application of the Time Value of Money (TVM) model, which frees itself from the dependence on collateral. By analyzing users' cash flow patterns, it utilizes smart contracts to provide instant and secure funding. Huma can offer users liquidity matching 70% to 90% of their expected future income, greatly broadening financing channels and enabling more people to enjoy the convenience of financial services.
The core advantages and application scenarios of the Huma PayFi network
(1) Rapid and efficient payment settlement
One of the significant advantages of the Huma PayFi network is its rapid payment settlement capability. In traditional financial systems, cross-border payments often take 3 to 5 days, whereas Huma leverages blockchain technology and stablecoins to achieve instant settlement. This transformation is profound for global trade. For example, when a Vietnamese manufacturer supplies goods to a U.S. retailer, the manufacturer previously had to wait through a lengthy settlement period to receive payment after shipment, often needing to seek expensive bridge financing to maintain operations during this time. With Huma's PayFi network, once shipment is confirmed, manufacturers can receive payment instantly, eliminating cash flow gaps and fundamentally changing the way funds flow in global trade, reducing capital costs and operational risks for businesses.
(2) Inclusive finance: Bringing financial services to a wider audience
In many developing regions, access to traditional financial services is limited, making it difficult for many individuals and small to medium-sized enterprises to obtain basic financial services such as loans and payment settlements. The emergence of Huma Finance brings hope to these groups. Through its innovative no-collateral lending model, individuals and small to medium-sized enterprises without properties or land as collateral can obtain financing support as long as they have stable future income streams. In terms of cross-border remittances, Huma has reduced fees and shortened arrival times, allowing migrant workers to more easily send their hard-earned money back home, improving their families' lives.
(3) Empowering trade finance, simplifying complex processes
Traditional trade financing processes are cumbersome, involving complicated document processing, multiple intermediaries, and long settlement periods. The Huma PayFi network simplifies this process through smart contracts and on-chain credit assessments. Exporters can obtain operating funds immediately after shipment verification, while importers can enjoy extended payment terms without increasing pressure on supplier relationships. The transparency and on-chain nature of transactions reduce fraud risks, simplifying audit processes and enhancing the efficiency and security of trade financing.
(4) Enhancing the efficiency of payment processors and card networks
Payment processors and card networks can also benefit from the Huma PayFi network. In traditional models, merchant settlement times typically take 2 to 3 days, while Huma shortens this time to instant availability, minimizing transaction costs using stablecoin-based infrastructure. This enables merchants to access funds more quickly, improving the efficiency of fund use and providing consumers with a more convenient payment experience.
Huma 2.0: Leading DeFi into the era of real yields
Launched in April 2025, Huma 2.0 has sparked a new wave in the DeFi space. It offers users diverse ways to participate in liquidity provision, introducing Classic Mode and Maxi Mode. Classic Mode is designed for users seeking stable double-digit USDC yields (currently annualized at 10.5%, updated monthly) while providing a basic reward called Huma Feathers; Maxi Mode is suitable for users looking to maximize their accumulation of Huma Feathers, offering a 5x base reward rate (without earning USDC yields), and users can switch modes for existing positions at any time.
DeFi composability is the core feature of Huma 2.0, realized through the PayFi Strategy Token (PST). This liquid yield-generating LP token allows holders to integrate their Huma position with leading protocols in the Solana ecosystem. Initially, users can exchange PST for USDC through the aggregator Jupiter, and subsequently support using $PST as collateral on Kamino, and trading future yields via RateX. This series of features provides users with greater flexibility and choice in managing their positions, allowing them to formulate personalized investment strategies based on their risk preferences and yield goals.
In just two years, Huma Finance's payment financial network has processed over $3.8 billion in transactions, generating $8 million in annualized revenue. Its payment financial income directly stems from the fees paid by enterprises using the network for payment financing and settlement liquidity, with funds rapidly cycling within days, continuously compounding from expenses generated by real economic activities. This sustainable model has received backing from top investors and has been recognized by industry analysts such as Messari, who believe payment finance has the potential to tap into a $30 trillion market size.
The emergence of Huma Finance brings new hope to the global financial market. Its built PayFi network, with an innovative payment and financing model, addresses the long-standing pain points of traditional financial systems, providing individuals, businesses, and financial institutions with more efficient, convenient, and inclusive financial services. With the launch of Huma 2.0, its influence in the DeFi space continues to expand, bringing users real, stable returns, leading the financial industry towards a more open, transparent, and efficient development direction. In the future, we have reason to believe that Huma Finance will continue to leverage its innovative advantages, constantly expand application scenarios, and drive profound changes in the global financial landscape, ensuring that financial services truly benefit everyone.
