1/n What is Huma?
Huma Finance is described as the first Payment Financing (PayFi) network, aiming to accelerate global payments through blockchain technology, providing instant liquidity access. Its core idea is to leverage real-world payment flows to offer users permissionless DeFi yields, particularly embodied in the Huma 2.0 version launched on the Solana blockchain. Huma Finance's positioning is 'to provide income support DeFi for 99% of people', emphasizing inclusive finance.
With the support of strategic partners such as Solana, Circle, Stellar Development Foundation (SDF), and Galaxy Digital, Huma has processed over $3.8 billion in transaction volume, delivering double-digit real returns to its LPs.
2/n Founding team background.
Founder Richard has seven years of experience at Google and has successfully started multiple ventures in Silicon Valley. This background gives him a unique perspective on technology development and market strategy, working with the team to drive innovation at Huma Finance. Additionally, Huma Finance has just secured $38 million in funding to further develop its blockchain business.
It can be seen that Huma Finance, through its PayFi network, combines real yield mechanisms and strives to enhance the accessibility of financial services and user experience, bringing a new direction of transformation to traditional financial markets.
3/n Huma Protocol offers two forms:
Huma (permissionless) - Launching in April 2025, this version is open to everyone, allowing retail investors to participate in the Huma pool and join the broader PayFi movement.
Huma Institutional — Customized permissioned services for institutional investors, providing selected, accounts receivable-backed credit opportunities within a regulated framework.
4/n The 'breakthrough' logic of Huma Finance: Why can it redefine PayFi?
The success of Huma Finance is not accidental; its underlying logic reflects a profound understanding of the integration of traditional finance with blockchain.
The absurd reality where the SWIFT system processed $5 trillion in settlement funds daily yet took 3-5 business days for arrival has spurred Huma's ambition to disrupt financial infrastructure. This first PayFi network born from the Solana ecosystem has completed over $3.8 billion in transaction volume since its launch in 2024, with its core logic directly addressing two major ailments of traditional finance: the efficiency black hole and value deprivation.
By combining stablecoin settlement with the high TPS performance of the Solana blockchain, Huma has built a real-time settlement network. Cross-border payments by enterprises have been compressed from three days in the traditional banking system to eight seconds, while costs have dropped from an average of 6% to 0.3%. This technological breakthrough brings not only a speed revolution but also creates a transparent and verifiable value distribution system — liquidity providers (LPs) can directly capture the yields generated in payment flows by staking stablecoins and other assets, rather than allowing profits to settle in bank vaults.
5/n Huma 2.0: A financial operating system for universal inclusion.
The Huma 2.0 version launched in April 2025 marks a leap from institutional-level tools to universal financial infrastructure. Its five major innovation modules redefine the participation rules of PayFi:
1️⃣ Permissionless access: Breaking financial privilege classes.
The certification of professional investors and KYC/KYB thresholds are eliminated, allowing any retail investor holding a Solana wallet to participate in the liquidity pool. This 'on-chain equalization' enables programmers in Mumbai, small merchants in Nairobi, and freelancers in São Paulo to equally enjoy stable returns of over 15%.
2️⃣ Dual-track yield engine: Classic model VS Maximum model.
Classic model: Balancing APY with HUMA token rewards, suitable for risk-averse investors.
Maximum model: Transforming 80% of yields into HUMA tokens, combined with a staking multiplier mechanism, with annualized yields reaching up to three times the benchmark interest rate.
Users can also form LPs independently, and LPs can freely choose a lock-up period of 0/3/6 months. A 3-month lock increases the base yield by 25%, while a 6-month lock can activate the 'compound interest accelerator', achieving exponential growth in the yield curve.
At the same time, through deep integration with top Solana DeFi protocols like Jupiter and Meteora, Huma liquidity certificates (PST) can be re-invested in scenarios such as flash loans and cross-chain arbitrage. For example, integrating PST into Kamino's automatic market-making strategy can push the overall annualized yield above 40%, with all operations completed atomically in a single transaction.
6/n Huma Feathers: Gamified incentive system.
The upgraded reward system introduces a dynamic multiplier mechanism:
Community contribution value: Inviting new LPs can earn a 20% yield bonus.
Degree of ecological co-construction: Participation in governance proposal voting unlocks airdrop weights.
Time loyalty: Continuous staking for 90 days activates the 'Phoenix Wings' special effect, increasing rewards by 2.5 times.
7/n In-depth deconstruction: How the PayFi paradigm leverages the global payment market value reconstruction.
Recently, the PayFi concept has sparked industry discussions. This innovative model that combines payment settlement with DeFi yield mechanisms faces two completely different judgments: critics view it as a blockchain variant of the P2P finance bubble, while proponents see it as a key infrastructure for realizing the Web3 value internet. Amid this polarizing debate, the Huma project has provided a compelling empirical case with $3.2 billion in on-chain settlement volume.
Taking the on-chain circulation of a $100,000 cross-border trade as an example, Huma has built a four-dimensional value capture model.
Asset digitization: Mexican exporters tokenize accounts receivable through the Stellar network, achieving smart contract confirmation of debt relationships.
Real-time settlement layer: US importers use USDC for instant payments, with funds directly injected into the Huma liquidity pool to form programmable assets.
Value distribution mechanism: Smart contracts automatically execute the distribution of 0.25% transaction fees, with 60% immediately allocated to liquidity providers (LPs).
Cross-chain settlement network: Bridging fiat channels through Circle's CCTP protocol, completing localized payment of MXN stablecoins within 8 seconds.
This architecture directly dissolves the four intermediary links in the traditional SWIFT system: custodial banks, agent banks, clearing houses, and forex market makers, compressing the settlement period from 36 hours to 23 minutes, and creating an instant yield of 0.15% per transaction for LPs.
This 'value routing' mechanism, which transforms the global annual payment flow of 126 trillion USD into an on-chain revenue pool, is reshaping the valuation model of financial infrastructure.
8/n Paradigm shift: From institutional intermediaries to algorithmic governance.
The technological upgrade of Huma 2.0 brings deeper institutional innovation:
Yield democratization: Individual wallet holders can obtain an annual yield of 7.8% by staking USDC, surpassing the benchmark of JPMorgan's money market fund by 230 basis points.
Revolution of capital liquidity: The savings of Filipino workers can participate in real-time accounts receivable financing at Mumbai textile factories, achieving granular matching in microfinance.
Regulatory technology integration: Utilizing zero-knowledge proofs to build compliance channels on the Solana chain, achieving a transaction throughput of 2,837 TPS while meeting FATF travel rules.
These innovations are deconstructing the three major pillars of traditional banking hegemony: the privilege of credit intermediation, the monopoly of cross-border settlement, and the spread of term conversion.
9/n Ultimate scenario: Establishing a synchronous resonance between the financial and physical worlds.
The value internet depicted by Huma's ecosystem presents three characteristic dimensions:
1️⃣ Time-space compression effect: The sales revenue of African coffee farmers has participated in hedging strategies in the Chicago futures market at the time of commodity delivery through smart contracts.
2️⃣ Value fluidization: When raw material payments from Vietnamese factories flow through DeFi protocols, they automatically convert into yield certificates for the Berlin university student education fund.
3️⃣ Antitrust architecture: The liquidity trajectory of each USDC becomes an open blueprint, dismantling the dark pool operations of traditional finance through on-chain transparency.
10/n Metaphor of wings and institutional innovation of crypto civilization.
The name of the Huma Feathers reward program contains deep institutional economics metaphors — in Aztec civilization, feathers were not only a medium for divine communication but also a material carrier of social hierarchy. When modern users obtain 'digital wings' through staking assets, they are essentially participating in the Hayek-style practice of monetary denationalization.
The Huma protocol allocates 30% of fee income to repurchase and destroy HUMA tokens, constructing a tightening mechanism for non-sovereign currency, while users holding Feather NFTs can participate in the dynamic adjustment of cross-chain fee models, realizing on-chain experiments of the Harberger tax system.
At the same time, the smart contract settings of the liquidity pool impose a 7-day withdrawal delay, establishing a balance mechanism between efficiency and systemic risk.
At this moment, a new generation of financial operating system prototypes is growing on Solana's parallelized virtual machine architecture. Early liquidity providers not only captured an annualized return of 18.9% but also participated in writing the initial terms of the (on-chain financial charter) — a new institutional framework made up of code, incentive models, and community consensus that may define the value exchange criteria in the post-dollar era.
As payment settlement transforms from a backend cost center to a front-end revenue engine, the power coordinate system of the financial industry is undergoing a 90-degree shift. In this new dimension, becoming a creator of wings requires not only cognitive upgrades but also the transformation of asset liquidity into the impact of institutional design.
History never waits for the hesitant; the critical point of the financial revolution has arrived — are you ready to become a creator of wings in this era?
Join Huma, and toast to your future.