Huma Finance｜The world's first "PayFi" network

Huma Finance - The Next Generation of Income-Backed DeFi

Huma Finance is a blockchain project pioneering a new field called "PayFi" (Payment Finance). In traditional financial systems, individuals and businesses need credit checks and collateral to receive loans, resulting in complex procedures and high fees. To address this issue, Huma offers an innovative financial service that allows fundraising using future income (salary, accounts receivable, etc.) as collateral.

Huma utilizes smart contracts to directly connect lenders and borrowers, enabling quick and low-cost fundraising. Furthermore, by leveraging blockchain technology to diversify credit risk and tokenize real-world assets (RWA), Huma bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi). It has already raised a total of $46.3 million from major investors such as Race Capital, Distributed Global, HashKey Capital, and the Stellar Development Foundation, and has recorded a cumulative $3 billion in on-chain transactions as of 2024.

Challenges of Traditional Finance and Huma's Approach

In traditional bank loans, borrowers need to submit credit scores and assets as collateral, which presents a high hurdle, especially for individuals and SMEs in emerging countries. Additionally, international remittances and settlements incur high fees and long processing times via the SWIFT network, making inefficiency a major issue.

Huma addresses these issues by introducing on-chain transactions using blockchain technology, offering the following advantages:

1. Borrowing Funds with Income as Collateral

• Salaried workers can raise funds on Huma using their next paycheck as collateral, while freelancers and companies can use confirmed contracts or outstanding invoices (accounts receivable).
• This creates a new form of lending accessible even to users without crypto assets.

2. Tokenization of RWA (Real-World Assets)

• For example, tokenizing a 1 million yen invoice and borrowing a portion of it creates liquidity.
• Conducting transactions on the blockchain enhances transparency and creates an environment for global investors to participate.

3. Instant and Low-Cost Fundraising

• Processes that take several days with traditional financial institutions can be completed in minutes with Huma.
• This makes international settlements and securing liquidity smoother.

How Huma Finance Works

Huma's platform is built on two pillars: the protocol layer and the application layer.

Huma utilizes smart contracts to automate the lending and borrowing process, ensuring secure financial transactions.

• Borrowers (individuals/companies) verify their credit information and future income and open a credit line.
• Lenders (investors) provide funds to the pool and earn interest income from lending.

Huma also offers tranched (senior/junior structure) pools for lenders, allowing for risk-adjusted investments.

• Senior Tranche (Low Risk/Low Return)
• Junior Tranche (High Risk/High Return)

Huma's application offers a variety of financial services, including: 1. Revolving Credit Line

• A loan that allows for repeated borrowing and repayment within a predetermined limit.
• Suitable for freelancers and sole proprietors.

2. Accounts Receivable-Backed Factoring

• A service that allows businesses to borrow funds against outstanding invoices (accounts receivable).
• Smooths cash flow for SMEs and enables instant access to funds.

Strengths and Growth Potential of Huma Finance

Huma is attracting attention due to the following three strengths:

1. Access to Underserved Populations
Huma can be used by people without bank accounts and small businesses in emerging countries, contributing to financial inclusion.

2. Cross-Border Instantaneity and Low Cost
By completing lending and borrowing on the blockchain, fundraising is possible within minutes, significantly reducing the burden of international settlements.

3. Strong Investor Backing and Track Record

• February 2023: Raised $8.3 million in seed funding from Race Capital, Distributed Global, etc.
• September 2024: Raised an additional $38 million led by Distributed Global (with participation from HashKey Capital, Folius Ventures, Stellar Development Foundation, etc.)
• Total funds raised: $46.3 million, total on-chain transactions: over $3 billion

Huma also plans to offer services on multiple blockchains such as Solana, Ethereum, and Stellar, with expectations for future ecosystem expansion.

Future Outlook and HUMA Token

Huma Finance aims to "democratize finance" and "facilitate global capital circulation," and is expected to grow further in the future.

1. Issuance of HUMA Token and Governance
Planning to issue a token on the Solana blockchain.
Envisioning multifaceted use cases such as governance voting by users and incentivizing liquidity providers.

2. Partnerships with Fintech Companies and Financial Institutions
In January 2025, partnered with international remittance startup Arf and major Middle Eastern financial group LuLu Financial to enhance real-time payments and liquidity provision.

3. Promotion of Multi-Chain Deployment
Building a cross-chain DeFi ecosystem utilizing Ethereum, Solana, and Stellar to reach a wider user base. Huma Finance is solving the challenges of traditional financial systems and establishing itself as the next-generation decentralized financial platform accessible to everyone. Attention is focused on Huma's latest developments towards future airdrops and token issuance.

Project details can be found Here

Huma Finance raised $8.3 million in its Seed round in February 2023 from investors including Robot Ventures and Distributed Global, and raised an additional $38 million the following September from investors including Hashkey Capital.

Huma Finance is currently running a campaign offering up to 20% USDC APY on Solana! By participating in this campaign, you can earn up to 7x Huma points, which may qualify you for a future airdrop.

Campaign Highlights

✅ Low minimum deposit: Only $100USDC
📈 High yield: Earn up to 20% USDC APY
🎁 Reward boost: Earn up to 7x Huma points

This campaign is for a limited time, so early participation is recommended. Huma points are an indicator of your contribution to the protocol and may be used as a basis for distributing the planned Huma token airdrop.

Airdrop details can be found Here

Summary of Steps

1. Visit the website
2. Connect your wallet
3. Provide liquidity
4. Refer friends and earn referral rewards

Detailed Steps with Images

1. Visit the website

2. Connect your wallet

3. Provide liquidity

4. Refer friends and earn referral rewards