🔸 Understanding Huma Finance's $46.3 million financing in one article 🤔 What is Huma's Payfi network? @Humifinance is building a financial network with the core concept of "Payfi", which stands for Payment Finance. Huma's vision is to build an ecosystem of "platform+super applications", for example, the Google ecosystem includes Android platform+Gmail/YouTube super applications. For Huma, its super application is "Arf", a financial institution specializing in "stablecoin cross-border settlement business". In simpler terms: Huma is a platform and fund pool, similar to a "Yu'ebao"; Arf is the fund user, using "Yu'ebao's money to advance funds for clients". 💸 Huma's two major products In order to run this business, Huma's funding pool needs money to enter, so they have launched two products: Huma Institutional and Huma 2.0. Huma Institutional: Professional investors and institutions can deposit money. The main investment direction is the advance payment business for cross-border payments and some applications for credit card T+0 settlement. Huma 2.0: Even retail investors can save money to participate without permission. Provide 10.5% APY earnings+Huma points. This portion of the revenue comes from Huma's Payfi strategy, specifically, the funds deposited by users into Huma 2.0: 80% is used for Payfi assets (Arf Pool) in Huma Institutional, including advances, credit card settlements, etc. 20% is placed in the high liquidity Defi protocol (Kamino/Pendle PT/AAVE) to ensure users' redemption requirements. 💰 How does Huma's platform generate revenue? The Huma platform promises users a 10.5% APR revenue, so they need to earn more than that. As mentioned above, 80% of assets are used for Payfi, lending money to settlement institutions such as Arf at a rate of 12.5% interest; The remaining 20% will be used for the DeFi protocol, which is estimated to generate an annualized revenue of around 11%. The capital cost of the Arf platform is 12.5% interest, but according to its data, the settlement fees they offer to customers can achieve an annualized income of 15% -25%. 🌉 How will the USDC deposited by the user into Huma be used? The traditional cross-border payment process is complex, and it takes several days for the remitter's money to arrive (T+3/T+4). Huma aims to accelerate this settlement process (T+0/T+1): Payment company A in Hong Kong received a remittance request from a customer to Australia. 2/Payment company A will place the funds in a regulated Safeguarding account and send the voucher to Arf. After confirming the voucher, Arf will first advance the USDC received from Huma to payment company B in Australia. 4/Payment company B completes the fiat currency exchange of USDC, settles with the payee, and then notifies payment company A. 5/Finally, A transfers the money from the Safeguarding account to Arf, completing the funding loop. 🪶 What can users get after saving money? Ordinary users can deposit USDC to participate in Huma2.0, and this pool is currently full, but the upper limit may be reopened at any time. In Huma 2.0, there are Classic mode and Maxi mode: Classic gives you 10.5% APY earnings+Huma points; Maxi has no earnings, but has higher Huma points. If you choose to save Classic, you can receive PST certificate tokens; If you choose to deposit MAXI, you can obtain mPST tokens. The mode can be switched at any time in the Portfolio, and every time it is switched, the PST/mPST token will be burned and another token will be minted. In addition to the deposit mode, users also need to decide their lock up time: Huma offers three lock up periods of 0/3/6 months, with longer lock up periods resulting in higher Huma point multipliers. Users can proactively increase the lock up period from no lock up to 3/6 months to earn more Huma points. It should be noted that the lock up time can only be adjusted upwards and cannot be adjusted downwards, and switching modes will not reset the lock up period. Although it is currently not possible to make active deposits, users can purchase PST on Jupiter and then switch modes and adjust lock up periods on their own to earn profits and Huma points. DYOR。