Huma Finance (II) Principle Revealed - How to Put Future Income on the Blockchain?

Understand in Three Steps! How does @Huma Finance 🟣 prepay for the future?

We just proposed an exciting concept: monetizing future income.

Now, let me explain in the simplest terms how #HumaFianance works; the whole process can be simplified into three steps:

1. Verify your "Income Stream" 🧾

You need to prove to the Huma protocol that you have a stable and verifiable future income. This can be a contract you signed with a client, records of payments received from a platform, or orders from a business.

2. Mint your "Income Certificate" (NFT) 💎

Once the income is verified, the Huma protocol will generate a unique "Accounts Receivable Certificate" for you (which can be understood as an NFT). This certificate represents the "ownership" of that future money.

3. Collateralize the certificate to obtain a loan 💸

Finally, you will collateralize this income certificate NFT in the Huma liquidity pool, and the protocol will instantly lend you stablecoins based on the value of the certificate. When your client pays in the future, the funds will automatically go to the protocol to repay the loan, and the remaining amount will be returned to you.