In the traditional credit system, borrowers must provide collateral to obtain loans. However, for freelancers, small entrepreneurs, or individuals without fixed assets, this threshold often means they are excluded. The idea proposed by HumaFinance is to break through this limitation by introducing 'future income' into the credit system.
The significance of this model lies in allowing more people to obtain financial support through on-chain channels. Borrowers only need to prove they will have stable cash flow in the future to secure a loan. This not only increases inclusivity but also makes financial services more flexible. For users with unstable cash flow but clear prospects, this undoubtedly provides a new financing pathway.
HumaFinance's design also includes the PayFi network, which closely integrates payments and lending. As a result, the flow of funds, payment records, and repayment behaviors can be clearly presented on-chain, enhancing transparency and trust. For institutions, this means easier risk control; for individuals, it offers a more friendly financial experience.
It is also worth noting that HumaFinance introduces RWA into the credit scenario. By bringing real assets such as accounts receivable onto the chain, it not only expands the application boundaries of DeFi but also fosters a closer integration between on-chain finance and the real economy. In the long run, this model could become an important pathway for the integration of traditional finance and the crypto world.