Big things are happening in the DeFi circle! Huma Finance is going crazy with the PayFi revolution.
Who says payments and financing can only 'play their own games'? Huma Finance aims to break the norm and directly create the world's first legitimate PayFi network—simply put, it's a magical infrastructure that allows you to borrow money on-chain based on 'real income flows' like salaries, invoices, and remittances! And this is not based on the old trick of collateralizing crypto assets, but on 'the time value of money' without collateral, emphasizing 'borrowing based on strength'!
Let's first talk about the key question: What is PayFi? Why does it exude such a 'king bomb' aura as soon as it appears?
First of all, it is the 'super connector' between traditional finance and DeFi! It can pull traditional payment flows, like merchant payments, trade financing, and remittances, which are often in the tens of trillions, directly into the blockchain. The most impressive part is that real-world transactions can achieve 'instant programmable settlement,' directly leaving behind slow traditional systems like SWIFT and pre-financing, and upgrading financial infrastructure to 'version 2.0'!
Moreover, it also helps users 'unlock liquidity passwords'! There’s no need to lock crypto collateral tightly; as long as there is expected future income, that's enough—Huma will assess your cash flow and can provide you with 70%-90% of your expected income on the spot, turning 'accounts receivable not yet received' into usable cash instantly. Who wouldn’t call this operation 'amazing'?
Not to mention its 'capital turnover speed'! Riding on high-throughput chains like Solana and Stellar, transactions are so fast they are measured in milliseconds, liquidity returns to the system in minutes, and LPs can earn continuous profits just by lying down. It's simply a source of joy where 'money makes money'!
Let’s dig into the 'operational secrets' of the Huma engine, which is fundamentally about 'modular + automated' double buff support!
The first step is 'income signal aggregation': salary slips, staking rewards, invoices, remittances, various data can all be collected by Huma, and then using assessment agency smart contracts, combined with on-chain and off-chain data together for 'gatekeeping', risk assessment is tightly controlled.
The second step is 'choose your liquidity pool and yield model': Huma 2.0, which launched in April 2025, is super user-friendly, anyone can be an LP without needing KYC, and can choose between two options—want to earn steadily? Choose the classic model, earning approximately 10.5% in USDC returns, plus Feathers token rewards; want to go for a big score? Choose the Maxi model, give up USDC returns for up to 17.5 times the Feathers, doubling your returns!
The third step is 'super flexible strategy tokens': LPs can receive PST or mPST, these PayFi strategy tokens, and can partner with other Solana DeFi protocols, whether to optimize yields, use tokens as collateral, or layer investment strategies, whatever is convenient.
The last step is 'full-process automation': from credit assessment to disbursement, repayment, and recovery, everything is handled by smart contracts, which are transparent and smooth, without needing to 'read people's faces.' It’s a solid non-trust underwriting framework!
Of course, Huma's popularity also comes from its 'hard power'!
In terms of financing, it raised $38 million through Distributed Global by September 2024, with HashKey, Folius Ventures, and Stellar Foundation directly investing $10 million in support. The vision of these big players is rarely wrong, right?
The merger operation is also super powerful! In April 2024, it teamed up with the top on-demand liquidity payment platform Arf, achieving a combined transaction volume exceeding $1.8 billion, and managed to maintain 'zero defaults.' By 2025, it aims for a transaction volume of $10 billion, and this growth rate is simply like having a cheat code!
Cross-chain layout hasn't been neglected: in November 2024, it will first go live on Solana, gaining a wave of fans with ultra-fast settlements, and now it is expanding to Stellar (Soroban) and other chains, the PayFi ecosystem is visibly growing!
Let the data speak: Huma's 'report card' is quite impressive: by mid-2025, it processed $4-4.5 billion in on-chain transactions, with active LP capital exceeding $100 million, annualized returns of about 10.5%, and with the support of Feathers tokens up to 17.5 times, returns are maximized! Moreover, its application scenarios are very practical, from cross-border payments and trade financing to merchant settlements and remittances, even providing operating funds for small and medium enterprises in Kenya and the Philippines. Wherever there is a need for 'financial assistance', it is present!
However, Huma is not without challenges: different markets have different regulatory compliance requirements, KYC/KYB must be handled meticulously; if income data is inaccurate, risk assessment will falter; as global expansion continues, risk control must also upgrade accordingly. But even with these small challenges, it won't stop its 'ambition'!
Ultimately, Huma Finance is not just a DeFi protocol; it is a 'financial inclusion engine'! With future income, one can borrow money, allowing billions who lack crypto collateral to enter the DeFi door. Supported by institutions and with a rapidly growing ecosystem, it aims to make PayFi the 'new mainstream' in global finance!
To be honest, the next 'top player' in the crypto circle might just be Huma Finance! Merging with Arf, achieving transaction volumes in the billions, blooming on chains like Solana, and helping LPs earn real money, it is redefining the relationship between DeFi and the real economy—every PayFi transaction is a 'financial innovation'!
