If we compare Huma Finance with traditional DeFi protocols, the differences are very clear.
In traditional DeFi protocols, liquidity mostly remains in lending and AMM pools, where users earn interest or fees. But the problem is: the yields behind these often rely on market speculation, making it impossible to guarantee long-term stability. Especially during downturns, a sharp drop in yields is the norm.
Huma Finance's PayFi model is different. Its liquidity is continuously invested into payment and financing scenarios, resulting in a high turnover rate. For example, e-commerce settlements, salary advances, and accounts receivable financing. The demand for these scenarios hardly decreases with market fluctuations; instead, it is positively correlated with the global payment volume.
The result is that the yields provided by Huma are real "Real Yield," not virtual yields based on secondary market speculation. This is also why it can maintain annual double-digit yields even in uncertain market conditions.
If traditional DeFi is more like a "crypto bank," then Huma is like an "on-chain payment financial infrastructure."
