#HumaFinance @Huma Finance 🟣

Here's a breakdown of what Huma Finance is about:

1. What is PayFi?

PayFi, or Payment Finance, is a new concept introduced by Huma. It refers to financial services built on blockchain technology that leverage real-world payment activities for credit, yield, and instant settlements. Essentially, Huma aims to bridge the gap between traditional payment systems and the efficiency of DeFi.

2. How it Works:

Huma Finance operates on a multi-layered blockchain protocol, primarily built on Solana for its speed and low costs:

* Transaction Layer: Utilizes high-performance networks like Solana for rapid and cost-effective transactions.

* Currency Layer: Integrates stablecoins like USDC to minimize foreign exchange volatility.

* Financing Layer: Businesses can access immediate liquidity from decentralized capital pools by leveraging on-chain credit credentials, such as tokenized accounts receivable.

This structure allows Huma to act as a comprehensive solution that combines the roles of traditional banks, payment institutions, and factoring companies into a single, automated protocol.