Welcome to an exploration of Huma Finance, an income-backed DeFi protocol for the 99%. This article was written by one of our community members – Jonathan Lopez. It dives into Huma Finance's vision, how it works, and its potential impact in regions like Latin America and Southeast Asia.

We invite our community members to delve deeper into the Huma protocol by creating content and sharing their work with us, as we are open to amplifying your contributions on our channels.

The Power of HUMAnity

Throughout history, humanity has risen to various challenges by learning, adapting, and working together to create a better future. Imagine if we could tap into tomorrow's resources today to fund innovative projects that could propel us forward right now. That's where Huma Finance comes in.

Vision for Huma

Huma's protocol enables entrepreneurs and visionaries to utilize future payments to develop world-changing projects today.

Introducing Huma Finance

Huma Finance is the first income-backed Decentralized Finance (DeFi) protocol designed for the 99%. It allows partners to create lending pools on the Huma platform, where borrowers can access loans based on their future income or cash flow.

Traditionally, banks require collateral, such as a house, to approve loans. Those without assets are often deemed "not creditworthy," even with excellent credentials, business ideas, or potential future earnings. Huma's protocol allows borrowers to access lending pools using a wider array of "collaterals," including income, Web3 DAO payments, staking income, NFT royalties, GameFi rewards, farmed yield, and more. This creates a more inclusive and dynamic lending ecosystem.

How Huma Finance Works

The evaluation agents on the Huma Finance protocol considers a borrower's monthly income from various sources, including full-time jobs, future invoices, transactions, subscription revenue, royalties, and Web3 digital assets like DAO payments, staking income, NFT royalties, GameFi rewards, etc. By offering a diverse range of collateral options, the lending pools on Huma Finance can issue tailored loans that cater to individual needs.

Exploring Use Cases

Latin America: Rapid cryptocurrency adoption in Latin America is driven by factors such as political instability, currency devaluation, inflation, and financial exclusion. Additionally, remittances play a significant role, with $127.6 billion recorded in 2021, a 26% annual growth rate. However, traditional Money Transfer Operators (MTOs) are experiencing a decline in revenue growth, while crypto-based remittances have grown by 900% in 2022. Finally, Play-to-Earn (P2E) gaming offers new revenue-generating opportunities for people in countries experiencing high inflation and unemployment. With DeFi unlocking new possibilities, Latin America presents a timely opportunity for Huma.

Southeast Asia: Southeast Asia is a booming market for Blockchain Video Games, especially those utilizing the Play-to-Earn (P2E) model. These games attract millions of users from countries like Vietnam, Philippines, and Indonesia, who then enter the Web3 world through gaming. These gamers earn crypto rewards that can be used as collateral for loans on the Huma protocol, making it an attractive value proposition.

The Path Forward

Huma Finance's groundbreaking approach holds the potential to transform the way people fund their projects, utilizing tomorrow's income as collateral for today's ambitious ventures. By concentrating on regions like Latin America and Southeast Asia, Huma Finance can make a substantial difference in the lives of millions.

Author: Jonathan Lopez

About Huma Finance: Huma Finance is an income-backed DeFi protocol for the 99%. Huma is on a mission to onboard the next generation of DeFi users who want to use income for DeFi lending, allowing any individual or business to leverage DeFi regardless of their crypto holdings. Through partnerships with Circle, Request Network, and Superfluid, Huma Finance is launching the first on-chain factoring market on Ethereum Mainnet and Polygon. Huma plans to integrate with every on-chain income source to provide instant financing to the growing Web3 ecosystem.

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To learn more about Huma Finance read our Whitepaper.