## **What is Huma Finance?**

Huma Finance is a **decentralized lending platform** that enables users and DAOs to access undercollateralized loans through **streamlined, risk-adjusted credit models**. Unlike traditional DeFi lending protocols that require overcollateralization, Huma introduces a more efficient system where borrowers can secure loans based on their **creditworthiness and cash flow**.

# Features of Huma Finance

1. **Undercollateralized Loans**

- Huma allows **lower collateral requirements**, making borrowing more accessible.

2. **Risk Pools & Credit Assessment**

- Lenders can join **risk pools** and earn yield by funding loans.

- Borrowers are assessed based on **on-chain and off-chain data**, ensuring responsible lending.

3. **Real-World Asset (RWA) Integration**

- Huma supports **invoice financing and revenue-based loans**, bridging DeFi with traditional finance.

## **HUMA Token & Governance**

The **$HUMA token** powers the ecosystem, enabling:

- **Governance**: Token holders vote on protocol upgrades.

- **Incentives**: Stakers and liquidity providers earn rewards.

- **Fee Discounts**: Reduced fees for active participants.

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