@Huma Finance 🟣 is a groundbreaking decentralized finance (DeFi) protocol that redefines global payment and financing methods through its innovative payment financing network (PayFi). It utilizes blockchain technology and the tokenization of real-world assets (RWA) to address inefficiencies in traditional financial systems, such as delays in cross-border payments, high fees, and low transparency, providing global users with fast, transparent, and cost-effective solutions. Huma primarily operates on high-performance Solana and Stellar blockchains, supporting a range of use cases such as cross-border payments, credit card settlements, trade financing, and decentralized infrastructure (DePIN) financing, positioning itself as a leader in the rapidly evolving financial landscape.
💡 Core products and solutions
Huma Finance stands out by seamlessly connecting DeFi with real-world financial applications. Its core is to tokenize real-world assets (such as accounts receivable and income-supported loans), allowing investors to gain access to stable high-yield opportunities while providing borrowers with instant liquidity. Huma operates two main platforms to meet different user needs:
1. Huma 2.0: This is a permissionless platform launched on April 10, 2025, aimed at serving retail investors. It allows users to invest funds into Huma's lending pools or integrate with other DeFi protocols to earn attractive yields supported by real-world assets (approximately 10.5% APY or higher), democratizing high-quality investment opportunities previously limited to institutions.
2. Huma Institutional: This is a permissioned platform for qualified investors and institutions, requiring KYC/KYB verification, and focuses on high-performance accounts receivable financing, serving complex users seeking tailored financial solutions with enhanced compliance and security.
Huma Finance has launched three disruptive applications targeting the financial needs of specific groups:
· Wage flow financing: Aimed at gig economy workers, users can use their expected salaries for the next six months as collateral to quickly obtain USDC loans equivalent to 80% of their monthly salary, with an annual interest rate of only 5%-8%. The platform achieves automated risk control by linking APIs from platforms like Uber and Upwork, currently with a zero default rate.
· Invoice financing: Addressing the financing difficulties of small and medium-sized enterprises, Huma allows suppliers to pledge accounts receivable invoices to immediately obtain USDC equivalent to 90% of the invoice face value. This service reduces the average repayment cycle of traditional trade financing from 90 days to 1 day. Since merging with Arf, Huma has processed over $2.3 billion in invoice financing business.
· DePIN financing: Providing financing support for decentralized data centers, 5G base stations, and other DePIN projects. Huma has designed customized credit models for these projects, which can dynamically adjust repayment plans based on usage.
⚙️ Technological advancement and innovative architecture
Huma Finance's technological architecture is the foundation of its powerful functionalities, mainly reflected in the following aspects:
· High-performance blockchain and low-cost transactions: Huma leverages the high speed and low transaction costs of Solana and Stellar blockchains (e.g., transaction costs as low as $0.00025 on Solana) to provide a seamless user experience and near real-time settlement capabilities. Testing data shows that it takes only 1 minute to process 10,000 cross-border payments, with gas fees as low as $0.001 per transaction, significantly improving efficiency compared to the traditional SWIFT system, which can cost up to $50 per transaction.
· Innovative RWA protocol and risk assessment: Huma's RWA protocol adopts an innovative approach of 'SPV (Special Purpose Vehicle) + NFTification', converting real-world assets (such as wage flows and invoices) into digitally verifiable certificates on the blockchain (e.g., encapsulated as ERC-1155 standard NFTs). These certificates can be split, traded, or re-mortgaged. The platform integrates off-chain data sources (like bank statements and e-commerce sales data) through distributed signal processors (DSP) and uses machine learning technology to assess credit risk in real-time. Its unique 'Time-Value-of-Money (TVM)' model analyzes future cash flows and calculates their present value to determine the borrowable amount.
· Modular design and high customization: Huma's core competitiveness comes from its unique modular design and advanced risk management framework. Through Huma Protocol Core, the platform can accurately define the credit requirements of borrowers and introduce third-party evaluation agents for credit audits, further enhancing risk control capabilities. Pool owners can freely set repayment plans, fee structures, and tiered configurations according to specific needs, making Huma capable of meeting the financing needs of various enterprises of different sizes and types.
📊 Ecosystem development, achievements, and tokenomics
Huma Finance has made significant achievements in ecosystem construction and market performance:
· Business scale and partners: By 2025, Huma Finance's transaction volume reached $5.7 billion, with a total locked value (TVL) of $136 million, serving over 35 partners including Arf and Jia, while maintaining a zero-default record, demonstrating its robust risk management capabilities.
· Strategic mergers and expansions: In 2024, Huma Finance achieved a significant milestone by merging with the cross-border payment platform Arf. This strategic partnership enhanced Huma's capabilities in RWA tokenization, expanding its infrastructure for handling large-scale payment financing, and is expected to process an estimated $10 billion in transactions in 2025.
· Token economics model: The $HUMA token is the core of the Huma ecosystem.
· The total supply is 10 billion tokens.
· Core utilities include: governance (holders have the right to vote on protocol upgrades and new features), payment fees (using HUMA to pay transaction fees and platform fees), staking (earning rewards and participating in profit-sharing programs), and ecosystem incentives (rewarding liquidity providers, developers, and the community).
· In the initial circulation, 250 million tokens (accounting for 2.5% of the total) are allocated for airdrops.
· The tokenomics design considers long-term participation incentives (31% allocated to liquidity and ecosystem), a governance authority staking-weighted system, and a dynamic buyback + deflation plan to stabilize the token value base.
🔮 Future vision and industry impact
Huma Finance is not just a DeFi protocol but also aims to transform the vision project of the global payment ecosystem. By connecting borrowers and investors through a decentralized, blockchain-based network, Huma empowers capital acquisition in underserved markets while providing investors with stable real-world returns. Its focus on PayFi places it at the forefront of financial innovation, addressing real challenges such as slow cross-border settlements and limited financing options for businesses.
As the Web3 payment ecosystem continues to evolve, Huma Finance's innovative model is likely to become a key force driving the entire industry forward. It not only improves capital efficiency but also provides new possibilities for areas traditionally underserved by finance. In the future, Huma Finance is expected to play a bigger role in promoting Web3 financial innovation, bringing value to more businesses and investors, bridging traditional finance with blockchain, and opening the future of open finance for all.
#HumaFinance $HUMA is leading a financial inclusion revolution, enabling everyone to participate in the value distribution of global capital flows.
