Huma Finance Brings DeFi Innovation for Recurring Revenue Sector
Date: July 31, 2025
Author: Borjack22
Huma Finance, one of the rising decentralized finance (DeFi) protocols, is further strengthening its existence by introducing new innovations in the Web3 world: an income-backed lending system.
Based on the Ethereum network, Huma Finance adopts a model that allows individuals and businesses to use future cash flows as collateral within the DeFi ecosystem. This approach is considered capable of opening up broader access to financing for freelancers, digital creators, and small business owners who previously found it difficult to access loans through conventional channels.
“Our goal is to democratize access to finance and create a fair system for everyone,” said one of the founders of Huma Finance in a recent AMA (Ask Me Anything) session.
The protocol has partnered with various strategic partners, including Circle, Request Finance, and Superfluid, to integrate user income data in real-time, ensuring transparency and risk mitigation in the credit world of DeFi.
One of Huma Finance's advantages lies in its “on-chain cash flow underwriting” system, which allows for instant and automated credit eligibility assessment, unlike the traditional verification process that tends to be slow and inefficient.
With the increasing popularity of the Web3 sector and the gig economy, Huma Finance is said to be an important bridge between today's job market and the financial system of the future.
Currently, Huma Finance is also developing a tokenomics mechanism and opening opportunities for investors through incentive programs and community participation in protocol governance.
