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What is Huma Finance?
Huma Finance is a pioneering protocol in the PayFi (Payment Financing) field – a new financial model using stablecoins and on-chain liquidity to address traditional payment infrastructure issues: delays, high fees, and lack of transparency. With over $3.8 billion in trading volume and stable double-digit yields, Huma provides a more efficient and fair financial platform for global users.
How does Huma Finance work?
Huma operates on the PayFi Stack – an open architecture inspired by the Internet's OSI model. This stack includes 6 layers:
- Transaction Layer: Leveraging Solana and Stellar for low transaction speed and cost.
- Currency Layer: Supporting stablecoins like USDC, PYUSD, and yield-generating stablecoins like USDM.
- Custody Layer: Integrating solutions like MPC (Fireblocks, Cobo) and smart contract custody.
- Compliance Layer: Integrating KYC/AML standards like MiCA (EU), MAS (Singapore)…
- Financing Layer: Tokenizing real-world assets (RWA), structuring loan tranches, managing risks with on-chain data.
- Application Layer: Platform for building financial apps – e.g., payment gateways, P2P lending.
Each time a business uses the PayFi network for advance payment, they pay a liquidity access fee (typically 6–10 bps per day). This liquidity is repaid within 1–5 days and rotates multiple times/year, creating compound yields for liquidity providers (LP).
Products in the Huma Finance Ecosystem
Huma Finance currently has two main product lines: Huma 2.0 (Permissionless) for general users and Huma Institutional for financial institutions. Additionally, integrated DeFi products like PST token, Feathers rewards, and other DeFi tools also play important roles in the ecosystem.
1. Huma 2.0 – Platform for Receiving Yield from Real Payments (Permissionless)
