Huma Finance: A Protocol for Providing Loans Based on Future Income

Huma Finance is one of the pioneering projects in applying blockchain technology to provide flexible lending solutions based on future income. With over 46 million USD raised through two funding rounds and a disbursement value of nearly 1 billion USD, Huma is emerging as a bright spot in the field of decentralized finance (DeFi) applied to real life.

1. What is Huma Finance? Huma Finance is a decentralized lending protocol that allows individuals and businesses to borrow based on future income. Instead of requiring collateral like traditional models, Huma connects borrowers with investors on the blockchain, using flexible credit models such as: Revolving credit limitCredit limit secured by receivablesFactoring service (factoring) This protocol is built with the aim of bringing real finance into DeFi, through the tokenization of receivables, integrating a risk management system and adhering to strict legal compliance.
2. Outstanding features of Huma Finance ● Tài chính có cấu trúc (Structured Finance) Huma allows the construction of financial products with sophisticated structures, including: Diverse loan limits Daily yield calculation Loss insurance for investors ● Tokenization of assets (Tokenization) Through legal models such as SPV (Special Purpose Vehicle), Huma tokenizes real receivables into on-chain assets. This allows investors to transparently and efficiently track and trade real-world assets. ● High transparency The protocol details the lifecycle of on-chain receivables, allowing investors to monitor loan performance in real-time, from issuance to recovery.
3. Key distinguishing features ✅ Instant liquidity Huma provides a quick lending solution, helping borrowers access capital almost instantly through automated protocols. ✅ Modern risk management mechanism Smart contracts play a role in monitoring and enforcing risk management policies, ensuring the protection of capital for lenders. ✅ Legal compliance Huma collaborates with licensed partners to conduct AML ( anti-money laundering), KYC ( identity verification), and thorough investor screening before funding. ✅ Customizable according to needs Huma's modules can be flexibly configured to create products suitable for different types of borrowers – from freelancers to SMEs.
4. Operating model of Huma Finance Huma operates based on four core components:
5. Huma Pools It is a smart contract system that manages fees, loan limits, payment conditions... These Pools can be configured according to needs such as: revolving credit, loans secured by invoices,...
6. Agents evaluate (Underwriting Agents) Responsible for evaluating and approving borrowers, recording information into contracts, and executing loan management actions.
7. Encoding of receivables The borrower's receivables are represented as NFTs, allowing for tracking of performance and transfer between lending parties.
8. Huma DApp and SDK Provide an interface that helps borrowers, lenders, and participants interact conveniently with the protocol: deposit funds, withdraw money, track loans, ...
9. The main products of Huma Finance ● Hạn mức tín dụng luân chuyển (Revolving Credit Line) Borrowers are granted a fixed credit limit and can borrow and repay multiple times as long as they do not exceed the limit. ● Secured credit by receivables The borrower provides an unpaid invoice (invoice) to receive a loan limit corresponding to a percentage of the receivable value. ● Payment guarantee (Factoring) The business sells its receivables to Huma to receive an advance payment. Huma then takes responsibility for collecting from the end customer.
10. Actual operational situation Total value of loans issued: 953.57 million USD Total value repaid: 939.16 million USD Current default rate: 0% These impressive figures demonstrate effective risk management capabilities and the quality of borrowers being well-screened.
11. Summary Huma Finance is not just a simple DeFi project but a bridge between traditional finance and blockchain. By creating a lending ecosystem based on future income that is transparent, compliant, and flexible, Huma is laying the foundation for a new generation of financial protocols – where real assets are tokenized and operate completely on-chain. @humafinance #HumaFinance