Huma Finance Launches on Solana
Huma Finance, an EVM-based payment financing network, is launching on Solana to enhance its “instant liquidity solution.” This launch coincides with a campaign offering higher yields for accredited investors.
The “PayFi” protocol has processed over $2 billion in transactions this year, with zero credit defaults. Following a merger with cross-border payments firm Arf, it is on target to hit $10 billion in transaction volume next year.
Huma utilizes blockchain technology to provide payment financing (or "on-demand liquidity") for various use cases like remittances, digital asset-backed credit cards, trade finance, T+0 solutions for global payments, and DePIN financing. This aims to resolve inefficiencies in traditional finance systems, including high fees and slow processing times.
Launching on Solana will help expand the PayFi network further into “decentralized infrastructure” (DePIN). The project, a “DeFi track winner” at the ETHDenver Hackathon 2022, is already operational on Ethereum Layer 2s like Polygon, Celo, and Scroll, and has announced plans to launch on the alternative Layer 1 Stellar.
> “We are about to witness an explosion of activity in the decentralized payment financing space as protocols race to become not just more capable, but also more accessible and user-friendly,” said co-founder Erbil Karaman, highlighting that failure to address longstanding UX/UI issues could lead to cryptocurrencies being perceived as frustrating.
Karaman emphasized that as more users enter the space, expectations must be met: “Instant settlements, seamless transaction processing, and markets need to function at least as well as–if not better than–their TradFi counterparts.” He believes that Huma's work in supporting real-time payments is essential for cryptocurrency not to collapse under its potential stress.
Karaman also mentioned that an “incoming crypto-friendly administration” could attract a new wave of users to crypto. Based in San Francisco, Huma has partnered with stablecoin issuer Circle, infrastructure provider Fireblocks, leading Solana lending protocol Kamino, and the largest Solana-based decentralized exchange, Jupiter.
To celebrate its deployment on Solana, Huma and Arf have initiated a limited-time campaign that offers double-digit yields to accredited investors, utilizing revenues from Arf’s cross-border payment financing transactions.
Recently, the startup raised $38 million in funding.
Editor's note (Nov. 12, 2024 — 21:30 UTC): Huma has not yet launched on Stellar.
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