How to innovate payment finance through blockchain? From the team to financing, and to participation methods, this post takes you on a journey!

  1. What does Huma Finance do?

    Huma Finance is a pioneer in the PayFi (payment finance) field, focusing on solving liquidity pain points in cross-border payments. It provides financing solutions for businesses and individuals based on future income or accounts receivable, utilizing blockchain technology and decentralized finance (DeFi) infrastructure to create an efficient, transparent, and inclusive global financial ecosystem.

    Core Product: Huma (Version 2.0)

    Tailored licensed services for institutional investors, providing curated, accounts receivable-backed credit opportunities within a regulated framework.

    The core of the project lies in the Arf product.

    Arf is a financial institution registered in Switzerland, regulated by the Swiss Financial Market Supervisory Authority (FINMA) under its SRO (Self Regulatory Organization) framework. It currently holds a VQF (Verein zur Qualitätssicherung von Finanzdienstleistungen) license, enabling it to provide settlement services based on stablecoins to licensed payment institutions worldwide.

    Huma's goal is to build the world's first PayFi network through the PayFi Stack, providing high-yield financing solutions for cross-border payments while delivering real-world returns to investors.

  2. Luxury team: Led by executives from Google + Facebook.

    The team at Huma Finance is top-notch, with co-founders coming from tech giants and possessing deep industry experience.

    Two co-CEOs.

    One previously led the launch of GoogleFi and achieved breakthrough growth.

    The other propelled Facebook's platform to 1 billion users and successfully sold their company to Facebook.

    Core members include those who contributed to Lyft's IPO, possessing rich entrepreneurial and capital market experience.

    This team not only has technical strength but also practical experience in successful commercialization, laying the foundation for Huma's leading position in the PayFi space.

  3. Underlying Logic: How does PayFi reshape finance?

    Huma's core logic is to use blockchain and stablecoins (like USDC) to address the inefficiencies and high costs of traditional finance:

    1. Income-backed lending: Borrowers use future income or accounts receivable as collateral to connect with global investors on-chain to obtain flexible financing.

    2. Decentralization and transparency: Ensuring transaction transparency through smart contracts, reducing intermediary costs.

    3. High-yield opportunities: Providing investors with stable returns based on real assets, such as USDC with an annual yield of up to 10.5%.

    4. Ecological Expansion: By acquiring Arf Financial, Huma integrates liquidity solutions for cross-border payments, further consolidating the competitiveness of the PayFi network.

  4. Financing Situation: Capital backing, full of confidence.

    Huma Finance has raised a total of $46.3 million, with a luxury lineup of investment institutions:
    HashKey Capital: Asia's leading blockchain investment institution.

    Circle: The issuer of USDC, a giant in the stablecoin field.

    Notable investors and institutions include Santiago R. Santos, Robot Ventures, and others.

    In addition, Huma participated in the ETHDenver hackathon with $8.3 million in funding, showcasing its activity in the blockchain community. The latest round of $38 million financing further proves the market's recognition of its business model and development prospects.

  5. How to participate in Huma Finance?

    Huma has currently launched the Points Mining 2.0 activity, where participants can earn points by staking USDC and receive potential airdrop rewards. Here are the detailed participation methods:

    1. Connect your wallet.
    2. In the bottom left corner, you can enter the invitation code: TMp5c3.
    3. Click the 'Submit' button.
    4. Deposit USDC into your wallet.
    5. Choose your strategy:
    1. Classic Mode: Stable interest rate of 10.5%, lock for 6 months to earn up to 5 times Feather points.
    2. Maximization Mode: No interest, lock for 6 months to earn up to 25 times Feather points.
    • Classic Mode earns PST, Maximization Mode earns mPST.
    • You can exchange these tokens for USDC on @JupiterExchange.
    6. Complete the Galaxy Mission.

    If you're torn between taking all points, taking profits, or a mix of both, here are some of my thoughts:

    Huma Finance's 'Huma Feathers' points system is designed to create a multi-party game environment, which is very clever:

    Classic Strategy:Users earn approximately 10.5% APY stable returns, suitable for investors seeking immediate gains. This is a typical 'low-risk - medium return' strategy.

    Maxi Strategy:Users forgo APY returns (0%) but receive significantly increased Feather points rewards (up to 25 times, depending on the lock period and participation time). This is suitable for long-term investors who are optimistic about the future value of the points (such as potential token airdrops).

    The longer the lock-up time, the higher the multiplier of points (Huma Feathers) that can be collected.Whether to lock up or forgo the highest stable returns of 10.5% APY can result in a 25x difference in point multipliers.

    If you're only aiming for stable returns of up to 10.5% APY, you can choose not to lock up; if you seek higher point returns, you can choose to lock up for 6 months to achieve 25x point returns.

    Personally, I lean towards taking all points for the following reasons:

    1. The project team is real-name verified, the founding team has background from large companies, and the core of the project, arf, is under entity supervision, such as monitoring by the Swiss Financial Market Supervisory Authority, making the likelihood of project exit and risk low.

    2. The team has funding from well-known project parties such as Distributed Global, Race Capital, Hashkey, etc., with total financing of $46.3 million; if we add the funding for the arf project, that would be a total of $59.3 million.

    3. The project can generate its own revenue, currently with a total income of $3.2 million.

    4. The project party has its own risk management mechanism, data is relatively transparent, and has undergone audits.

    5. The current project has a flexible yield of 10.5% + points, outperforming many established DeFi protocols.

    6. The project party is doing something quite interesting; I personally think it is an innovation, raising funds in web3 and lending to listed institutions in web2. It allows ordinary users to participate.

  6. Why is Huma worth following?

    Clear business logic: PayFi combines real assets to solve actual financial pain points.

    Top team endorsement: Executives from Google, Facebook + experience with Lyft's IPO, strong execution.

    Capital favor: $46.3 million in financing, backed by giants like Circle.

    High returns + airdrops: 10.5% annualized return plus potential airdrops, balancing short-term returns with long-term potential.

    Huma Finance is not only a DeFi project but also a model for the integration of blockchain technology and real finance. Its transparent documentation and sincere communication stand out in the industry!

Perhaps HUMA is the next $Plum, $XRP