#Binance
HUMA Currency
is a decentralized finance (DeFi) protocol that aims to bridge the gap between real assets and the decentralized world. The protocol specifically focuses on Invoice Financing, a process that allows companies to gain instant liquidity by selling their unpaid invoices.
How does Huma Finance work?
Transforming invoices into digital assets: Invoices due to companies are converted into "non-fungible tokens" (NFTs) on the blockchain network. Each NFT represents a specific invoice and all its details.
Pooling liquidity: Lenders (liquidity owners) can deposit stablecoins (like USDC) into liquidity pools specific to Huma Finance.
Providing loans: When a company needs financing, it uses these digitized invoices as collateral to obtain a loan from the liquidity pools. The loan terms (such as interest rate) are automatically determined through smart contracts.
Repaying the loan: When the invoice is paid by the client, the funds are used to repay the loan, along with the interest, and then the profits are distributed to the lenders.
