The biggest limitation of traditional lending is the lack of fine-grained depiction of individual economic activities. Huma provides a brand new solution: treating income as a traceable, custodial, and divisible on-chain asset, and using it as collateral for credit. The core of this concept is 'income tokenization,' which reconstructs credit logic, allowing more non-crypto native individuals to enter on-chain financing.

The types of income currently supported by Huma include on-chain tips, DAO salaries, NFT sales commissions, etc., and it interfaces with mainstream income source platforms through APIs. This pathway of mapping Web2 income to a Web3 credit model breaks the strong dependency of on-chain finance on 'pledged assets,' allowing individual economic activities themselves to become sources of credit.

What is even more noteworthy is that Huma employs an on-chain contract automatic liquidation logic: if the borrower fails to continuously generate income, the system will automatically deduct repayments from the custodial income stream, avoiding large-scale liquidation risks. This mechanism provides stability to the entire on-chain credit market and lays the foundation for building more complex financial structures.

In the future, Huma is expected to become the core foundation for on-chain payroll management and freelance financial services. As on-chain finance becomes more mainstream, the market for income-based credit will far exceed the traditional DeFi user base, and Huma's positioning aligns perfectly with this growth momentum. #HumaFinance @Huma Finance 🟣 $HUMA