Recently, I spent quite a bit of time researching the RWA (Real World Assets) track and found that many projects are still stuck in the conceptual stage, but Huma Finance @Huma Finance 🟣 is different—it has truly established on-chain credit.
#HumaFinance did something quite practical: it didn't just talk about 'assets on-chain', but directly converted future income data like invoices, salaries, and rents into usable collateral, allowing users to borrow money instantly. Especially in emerging markets, this model that doesn't require traditional credit checks and doesn't need over-collateralization is truly disruptive.
They call this PayFi, which I think is quite fitting. Essentially, it is about bringing 'future money' into today. For instance, if your salary next month is $10,000 and you urgently need money now, Huma can immediately advance you $7,000 to $9,000, with a fee of just a little over a hundred dollars—much cheaper than cross-border remittances, and the speed is in seconds.
In terms of data, it is quite impressive: since its launch in 2024, @Huma Finance 🟣 has processed over $4.5 billion in transaction volume and maintained a zero default record. This indicates that their risk control model can withstand verification.
In terms of ecosystem, the Huma 2.0 upgrade has lowered the participation threshold. Now ordinary users can also become liquidity providers, earning stablecoin yields and HUMA rewards, and even participate in governance. This 'everyone can be an LP' model actually decentralizes the power originally held by institutions to the community, making the ecosystem more decentralized.
The design of the token $HUMA is also interesting. It is not only a governance certificate but also incorporates a deflationary mechanism: 50% of the fees will be used for repurchase and destruction. As transaction volume increases, the token will actually become increasingly scarce.
Currently #HumaFinance mainly runs on Solana - low fees and high TPS are indeed suitable for this high-frequency small amount scenario. However, their model has the potential for cross-chain expansion. In the future, if it can be replicated on Ethereum, Avalanche, and other chains, the growth potential will be even greater.
From an investment perspective, Huma is backed by institutions like Circle, Stellar, and Galaxy Digital, and previously raised $38 million, which makes its fundamentals relatively solid. Although the token price has recently adjusted due to unlocking events, in the long run, it addresses a real financial need—especially for those underserved by traditional banking services.
I personally think the most noteworthy point about Huma is that it is not repeating existing DeFi models, but is genuinely addressing real-world liquidity issues. It transforms finance from being just a game for 'asset holders' to starting to serve 'income earners'. This shift may be more significant than we imagine.
