Original author: MetaHunter168, chaincatcher.com

Reprinted by: Daisy, Mars Finance

Huma Finance is one of the most powerful platforms in the PayFi field, focusing on solving liquidity problems in the cross-border payment industry through innovative payment financial technologies. Huma has established a leading position in the PayFi track through the strategic acquisition of Arf Financial and the integration of its business. Huma provides strong liquidity and application layers through its PayFi Stack, positioning itself as the first PayFi Network, with the goal of providing efficient financing solutions for the cross-border payment field and bringing high real-world returns to investors. Team Background The two co-CEOs of Huma Finance are both accomplished former Google and Facebook executives.

They have backgrounds and strengths. One of them led the successful launch of GoogleFi, another led Facebook to achieve breakthrough development and helped the platform reach its first billion users. One sold his company to Facebook, and another was a core team member who promoted the successful listing of Lyft. In short, the lineup is luxurious, with successful backgrounds and strengths.

Financing: Huma Finance completes $38 million in financing

Major investment institutions:

1. European and American institutions mainly include Distributed Global, Circle Ventures, Robot Ventures and ParaFi

2. Asian institutions include Hashkey Capital and Folius Ventures as well as ARF’s investor Fenbushi. Overview of Huma’s business model: Huma’s business model revolves around payment, integrating the liquidity layer with the application layer through the newly released PayFi Stack.

Business features include:

1. Cross-border payment: Traditional cross-border payment companies usually rely on traditional banking channels for global transactions. This process is very slow. Friends who have remitted money know how slow it is. In order to solve this problem, some financial institutions will advance funds on the settlement side. Data shows that the funds occupied in global prepaid accounts are as high as 4 trillion US dollars. This part of funds has greatly restricted the development of these companies. Therefore, the payment industry is in great need of more effective liquidity solutions. By providing liquidity to payment institutions, Huma has perfectly solved the prepaid funds problem caused by the slow traditional bank channels in the cross-border payment industry.

2. Stable and efficient returns: The Huma platform provides an annualized real-world return of more than 20%. Investors can obtain a stable return of 10-12%. The income mainly comes from the platform's liquidity business, which is quite good.

3. Zero bad debt rate: So far, more than $1.9 billion in on-chain transactions have been processed, so compliance and risk control capabilities are excellent. Huma's strategic cooperation and solutions with Arf Huma completed the acquisition of Arf Financial in 2024. Arf Financial is a business that focuses on providing real-time liquidity to licensed financial institutions to help some institutions meet their customers' cross-border payment needs.

Arf’s business model:

1. Service Target: We provide liquidity to licensed financial institutions in many developed countries. We will conduct a comprehensive rating of potential customers based on business and financial data, and will only cooperate with them if they reach the corresponding level. This largely avoids some credit risk issues caused by borrowing.

2. High capital utilization rate: With a capital recovery cycle of about 1-6 days, the capital turnover rate exceeds 50 times per year, which greatly improves the capital utilization efficiency.

3. On-chain transparency: All borrowing and repayment are completed through USDC, and the borrowing and repayment information is updated in real time through smart contracts to ensure on-chain transparency and fund security. Illustration of Huma/Arf’s solution

To put it bluntly, Arf Pool on Huma provides liquidity opportunities for investors, who can choose to participate at the senior or junior level. The senior level has fixed returns and lower risks; the junior level has floating returns, depending on the proportion of junior levels in the pool. Of course, the potential return is higher than the senior level, but in the event of bad debts, the junior level will bear the loss first. Risk Control and Compliance Huma and Arf have strong compliance and risk control capabilities

1. Safe account: All user funds are stored in a safe account to ensure that user funds are separated from institutional operating funds. Funds are used for specific purposes.

2. Legal risks: Huma and Arf have legal rights to all liquidity loans. Even if the licensed financial institution goes bankrupt, Huma will have priority in recovering the liquidity loans.

3. Bad debt risk: The bad debt rate of licensed financial institutions in the payment industry is about 0.25%. Arf's ultra-short account period can effectively avoid the possibility of bad debts. In addition, Arf provides a 2% margin. If a bad debt occurs, this margin will be paid first. Data shows that so far, Arf has processed more than $1.9 billion in on-chain transactions, which is generally very reliable. (Data source: https://dune.com/arf_financial/arf-financia)

It has been officially confirmed that participants of the Huma x Scroll event will receive Huma incentives and Scroll marks, which will allow them to catch up with the top PayFi projects and continue to participate in Scroll events, killing two birds with one stone. So it is necessary to participate. The event will end at the end of the month at the latest, so try to participate.

Specific participation steps and tutorials:

1. Open the official website: https://huma.finance/

2. Click "Link Wallet" in the upper right corner

3. Select the corresponding "lock-up period" (I have made a simple table of specific points and annual interest rate returns. You can choose the corresponding lock-up period according to your own situation. I will use a 6-month lock-up period as a tutorial here)

I have made a table with the specific details, which is relatively clear and you can choose the corresponding lock-up period according to your own situation.

4. Select “Lock Pool”

5. Start “Authorization”

KYC certification process:

6. Accept the contents of the "Agreement"

7. Authorize "usdc", I choose advanced

8. Next, select the USDC to be locked, confirm with the wallet, and complete the lock. This concludes the tutorial.

Summarize

In addition to participating in the current activities to earn Huma points and Scroll points, you can also pay attention to the subsequent ecological development. The business model is still quite good, with strict risk control measures and capital scale. Huma is very likely to become the leader of real world assets (RWA). There is no problem with technical strength and strategic integration. In the future, it is likely to play an important role in the global payment industry. If you are interested, you can pay more attention to it.