Huma Finance Announces Launch of Its Permissionless and Composable Real-Yield Platform Huma 2.0 on Solana
Huma Finance, a Pioneering PayFi (Payment Finance) network, today announced the launch of Huma 2.0 on the Solana blockchain.
Following the launch, Huma 2.0 will operate as a Solana-based permissionless, compliant, and composable real-yield platform offering DeFi users access to composable real yields.
While the platform adopts payment-financing mechanisms, it will broaden individual access to stable, real-world yield. More importantly, Huma 2.0 will offer users alternative ways to participate as liquidity providers.
To achieve this, the platform will introduce two primary modes, Classic Mode and Maxi Mode, to cater to different user preferences. The platform allows users to switch the mode of their existing positions at any time.
The Classic Mode is suitable for users seeking stable, double-digit USDC yield (updated monthly) combined with rewards called Huma Feathers. Meanwhile, the Maxi Mode is tailored for users aiming to maximize their accumulation of Huma Feathers, earning rewards at 5x the base rate without receiving USDC yield.
The major feature of Huma 2.0 is its DeFi composability, which is enabled by the PayFi Strategy Token ($PST). $PST allows holders to integrate their Huma positions with leading protocols on Solana. At launch, users can swap $PST for USDC via Jupiter, the first of several planned integrations with top Solana DeFi platforms.
PayFi yields perform differently from DeFi yields that are often reliant on token incentives, market speculation, or typically low rates in traditional finance. PayFi yield originates directly from fees businesses pay using the network for payment financing and settlement liquidity.
With the PayFi mechanism, Huma consistently delivers stable, double-digit USDC yields, showcasing a sustainable model further validated by backing from leading investors and recognition from industry analysts like Messari regarding PayFis potential to address a $30 trillion market.
The development allows Huma 2.0 to leverage the ongoing shift in global finance and the DeFi space to provide efficient settlement liquidity and broadening access for individuals worldwide to earn from foundational financial activities.
It is important to note that the yield generated through PayFi is designed to be less dependent on crypto market cycles. Hence, economic activities like payments and trade may continue whether markets are booming or in a downturn, potentially offering a more stable foundation for Humas yield generation. This structure may make double-digit returns more relevant during bear markets, where speculative yields often decline.
Erbil Karaman, Co-founder of Huma Finance, commented on the development, saying;
Huma 2.0 isnt just another yield product its a structural shiftBy giving payments institutions a new source of liquidity that operates 24/7 with incredible capital efficiency, we are creating a new type of yield that is composable, transparent, and grounded in real economic activity. It finally gives DeFi access to a source of returns that institutions have kept to themselves for decades, and it does so without compromising on what makes DeFi powerful.
Text source: ZyCrypto
