Huma Finance (HUMA) is leading the way in building the world's first PayFi network, an innovative platform that seamlessly integrates payment and financing infrastructure, focusing on supporting real-world income streams and on-chain credit based on accounts receivable. Traditional crypto lending models often require users to provide crypto assets as collateral, limiting the flexibility and accessibility of lending. Huma Finance breaks this limitation by allowing users to use future income streams (including salaries, invoices, remittances, etc.) as collateral, promoting the realization of unsecured lending.
This project is based on the Time Value of Money (TVM) model, where smart contracts can accurately analyze users' cash flow patterns and assess the value of future income in real-time, thereby providing liquidity equivalent to 70% to 90% of future income instantly and securely on-chain. This not only greatly enhances lending efficiency and lowers the threshold for capital usage but also effectively addresses the financing difficulties caused by opaque credit assessments and cumbersome processes in traditional lending.
The launch of the PayFi network is expected to bridge the gap between the real economy and blockchain finance, facilitating more real assets and income streams to enter on-chain, pushing the digital economy to extend to a broader real economy. Furthermore, Huma Finance ensures transaction security and transparency through a mechanism of automatic execution by smart contracts, enhancing user trust and empowering decentralized finance.
From an application perspective, Huma Finance is suitable for various scenarios, such as income financing for freelancers, cash flow management for small and medium-sized enterprises, and cross-border remittances, addressing financing gaps that traditional finance finds hard to cover, and has vast market potential. The PayFi network represents a significant direction of innovation in on-chain credit, setting a new benchmark for the development of the future financial ecosystem.