Under the circumstance that Card General @CalmanBTC pressed countless times, it can be considered that he has participated in the project of Huma @humafinance. Card General has been depositing since February, and by now, his points must have 'overflowed'.
In fact, there are many good products in the Payfi track. The most important point is that Payfi is a project that can genuinely be implemented. Looking back at the L2 and L3 projects that VCs invested in over the past two years, the narratives were either very similar or fantastical. Usable scenarios are few and far between. During Defisummer, how many people were scrambling to do DeFi, and when cross-chain bridges emerged, how many people rushed to create cross-chain bridges? Yet now, the products that can actually be used are very few. Changing the way of thinking, if L1 isn't good, why expect L2 and L3 to break through.
🌟Scenarios
Scenarios are really important; whether they can be implemented and how much value can be realized after implementation. This is a question investors need to consider; investing real money in tangible places is extremely important. Randomly blowing hot air in a fantastical manner is likely to lead to a return to zero. What attracts me to Huma is its actual payment scenario, providing short-term financing services for licensed cross-border payment institutions. Anyone who has done cross-border business knows that the traditional SWIFT system has a long settlement cycle, generally taking about 3-5 days for funds to arrive. The handling fee of 3-5% is indeed a bit exaggerated. Through Huma's optimization, while achieving T0 payments, the handling fee is only about 0.1%. The utilization rate of funds has greatly increased.
The earliest financing provider, Arf, has also been acquired by Huma. Thus, a closed loop of 'deposit-loan-settlement' has been formed. A notable point is that before the merger, Arf handled over 3.9 billion in funds, and after the merger, it achieved a zero bad debt rate. As another stablecoin cross-border payment project, @circle, although it has laid out cross-border payments through CCTP as a stablecoin issuer, it does not involve profit distribution. Therefore, in terms of competitiveness, Huma is still superior. Moreover, Circle has also invested in Huma, which can be considered a strong alliance.
🌟Logic
On-chain users act as lenders, depositing USDC to obtain a fixed return of 10.5% while also receiving feather rewards. Borrowers are mainly compliant payment institutions that collateralize their fiat assets to borrow USDC for on-chain settlement of cross-border payments, with a capital recovery cycle of only 3-5 days. In the process of deposits and loans, Huma's source of income mainly comes from a 5% interest margin, with payment institutions paying about 15% in interest, while users receive 10.5% interest.
🌟Airdrop
Currently, there are two ways to obtain feathers: users can choose the Classic mode or Maxi mode on the platform.
1️⃣Classic Mode (Stable Arbitrage)
Users can obtain 10.5% APY + feathers.
The feather acquisition multiplier for demand deposits is 1X; for 3-month deposits, it's 3X; and for 6-month deposits, it's 5X.
2️⃣Maxi Mode (Gambling Mode)
The Maxi mode is purely for the purpose of gambling for airdrops; everyone knows that TGE will take place in Q2. Thus, the Maxi mode has come into being!
The feather multiplier for demand deposits is 5X; for 3-month deposits, it's 15X; and for 6-month deposits, it's 25X.
Feather grand stage, if you have the guts, come on!!!
🌈Thoughts
Currently, Huma's operational process and business model are quite clear; at least everyone knows where the money comes from. After a certain accumulation of cross-border payment business, if Trade Finance can also be developed, the space is indeed very large.
Those interested can pay attention!
