In the crypto space, many projects have liquidity that is 'short-lived'. They attract a bunch of LPs with high returns when they launch, but after a few days, LPs pull out after making some quick money, and the liquidity drops sharply. But Huma is different; its total active liquidity stabilizes at $136 million and is still increasing. The core is not relying on 'high returns to attract new users', but on 'solving urgent needs to retain customers', making users willing to stay in the ecosystem for the long term.
First, let's see why LPs are willing to invest long-term. Many projects offer LPs 'fixed high interest + token rewards', but when token prices drop, the returns disappear. Huma provides LPs with 'stable cash flow returns', as there are constantly people borrowing money (office workers, small businesses, cross-border users). The money from LPs can continuously generate interest, and it's in stablecoins like USDC, eliminating the risk of token price fluctuations. For example, Huma's classic model currently has an annualized rate of 10.5%. While it may not be the highest, it excels in stability and can be combined with Huma Feathers rewards, making it more worthwhile to hold long-term than to chase quick profits.
Now let’s look at why borrowers are willing to return. Traditional lending either has slow processes, low limits, or high fees. But borrowing from Huma is fast and convenient: upload income proof, and you can get your limit approved in minutes, with funds arriving almost instantly and low fees. More importantly, if you are a returning user with a good repayment record, you can access higher limits in the future. For example, if you borrow 30,000 for the first time and pay it back on time, next time you can borrow 50,000. This 'increasingly convenient' experience makes many people think of Huma first when they urgently need money, rather than other platforms.
There is also Huma's ecological stickiness. Whether it's LP's anchor badge, the credit accumulation of borrowers, or the content academy for creators, Huma provides users with 'long-term reasons to stay in the ecosystem'. You're not just here to make a quick buck and leave; you can gain more rights through long-term participation. For example, LPs lock in their funds to get higher limits, borrowers accumulate credit to get larger loan amounts, and creators gain influence through popular science.
Compared to those projects that attract users solely through short-term benefits, Huma retains users through 'urgent needs + stability + long-term rights', naturally stabilizing its liquidity. After all, in the crypto space, 'projects that can retain people' are truly valuable.
