Huma Finance: The Potential and Challenges of the PayFi Track
Huma Finance (@humafinance), as an innovator in the PayFi sector, attempts to reshape the global payment and financing network through blockchain technology. Its core value lies in tokenizing real-world assets (RWA) and providing enterprises with instant liquidity solutions, particularly excelling in cross-border payments and accounts receivable financing.
Project advantages are significant:
· Mature technological architecture: Based on high-performance blockchains like Solana and Stellar, achieving transaction costs as low as $0.001 and cross-border settlement efficiency within minutes.
· Real income support: Partners like Arf transform real payment needs into on-chain revenue, offering liquidity providers an annualized return of 5%-15%.
· Institutional-level risk control: Maintaining a zero-default record and employing third-party assessment agents for credit audits, demonstrating robust risk management capabilities.
However, Huma faces multiple challenges:
· Token volatility: HUMA experienced a single-day drop of 14%, with an overall decline of 80% from its listing peak.
· Limited funding scale: Currently, the Total Value Locked (TVL) is only $136 million, which still lags behind traditional finance scales.
· Regulatory uncertainty: Cross-border payments involve compliance requirements from multiple countries, and policy changes may impact business expansion.
Despite the challenges, Huma's innovation in the integration of RWA and PayFi is worth attention. Should it achieve breakthroughs in expanding its funding scale and stabilizing token value, it may become an important bridge connecting traditional finance and DeFi.
