In traditional DeFi lending, 'collateral' often refers to volatile crypto assets, leading to low lending efficiency and high barriers to entry.
However, @Huma Finance 🟣 is driving a paradigm shift: building the world's first PayFi network, using future real-world income as credit basis to achieve on-chain unsecured lending.
Its core model, TVM (Time Value of Money), is based on cash flow discounting logic, supporting income forms such as wages, invoices, and remittances. It analyzes repayment ability through smart contracts, releasing up to 90% liquidity.
This is an important step in the integration of DeFi and RWA, and Huma is attempting to establish standards for 'on-chain cash flow assets'. For the Web3 credit market, this structure is expected to become one of the most transformative infrastructures in the next decade.