In the traditional financial system, "over-collateralization" has always been a tricky issue. However, Huma Finance is providing a brand new solution to this millennia-old problem through its innovative Time Value of Money (TVM) model.

This revolutionary change is mainly reflected in three aspects: first, Huma can convert future income streams, such as salaries or invoices, into tradable securities and achieve rapid lending through smart contracts. Second, users can advance up to 70%-90% of accounts receivable without providing any collateral. Finally, this model significantly reduces the default rate, which is only one third of that of traditional financial models.

Currently, Huma Finance's services have covered over 50,000 users, including freelancers, small and medium-sized enterprises, and cross-border laborers. It is particularly noteworthy that, while traditional cross-border payment rates such as Visa can be as high as 6%, Huma is able to provide integrated payment and credit solutions at a cost of less than 1%.

The token HUMA of Huma also has multiple value capture mechanisms, including governance rights, fee sharing, and staking rewards. At the same time, its deflationary model design also helps to enhance the scarcity of the token.

This new financial model based on on-chain credit not only subverts traditional lending logic but also provides new possibilities for unleashing human capital value. As this PayFi revolution progresses, we may be witnessing the birth of a more inclusive and efficient financial system.