In the introduction of Huma Finance, a figure is often seen: x4.1 per month, which means that the monthly turnover of funds exceeds 4.1 times. When annualized, it is close to x50 times. What does this mean?
In traditional DeFi protocols, liquidity often remains in the pool, and annual returns entirely depend on interest rates. But Huma's logic is different; it continually puts funds into real payment settlement scenarios. For example, financing for cross-border e-commerce sellers, salary advances, etc., with every dollar of funds being used in a cycle. The result is that every $1 of liquidity can settle payments worth $50 over the year, thus generating 'Real Yield'.
Behind this high turnover rate is the collaboration between the Huma PayFi network and partners (such as Arf, Geoswift). Compliant stablecoin settlement channels + on-chain real-time liquidity allow funds to turn over with almost no 'idle period'.
For fund providers, this efficient utilization means more sustainable returns, not relying on short-term speculation. For the protocol itself, it positions itself as a 'payment financing engine', which can meet real demands while ensuring stable returns.
A x50 turnover rate is not just a slogan; it is a model that Huma has already implemented. This is the biggest difference between PayFi and traditional DeFi.
