One Minute Understanding of Huma Finance Yesterday, everyone was enthusiastically discussing @ humafinance @ 0x0xFeng @ jcmeowjc. Coincidentally, I have some previous experience in this area (a fintech company co founded by TVL with over 1 billion US dollars). Combining with @ starzqeth's interview with Huma founder @ DrPayFi, let me share my understanding -The main business of Huma Finance -Where did the money saved by individual investors go -Can I reach 10% of my age -What are the risks of the business -Huma's core competitiveness -Huma's Value to Blockchain -What are the risks of participation 1. Huma Finance's main business Huma mainly provides cross-border business financing. Traditional cross-border payments rely on the compliance system of banks and the swift network, which is relatively slow (possibly 1-6 days). Huma relies on stablecoin to quickly reach them Where have the stablecoins stored by individual investors gone The money deposited by individual investors is mainly used as an advance for cross-border payments Can I reach 10% of my age Huma charges customers a daily fee rate (between 16000 and 11000 yuan), which can exceed 20% of the corresponding annual fee and cover the cost of capital. There is industry knowledge here that as a short-term loan, the interest can be charged very high, which is different from long-term loans. The duration of a 10% decline mainly depends on the industry's dividend period. 4. What are the risks Huma serves licensed financial institutions with low risk, reportedly with a bad debt rate below 0.2%. 5. Huma's core competitiveness Compliance system+How to know the industry+Partner network effect 6. Huma's Value to Blockchain Enable stablecoins to generate interest off chain, surpassing the yield of US Treasury bonds. What are the risks of participation? Although Huma's business risk is relatively low, it is currently unclear what the maximum amount of advance payment Huma can make. The risk of 2B business is that there may be problems with major partners, resulting in a single major default. Although it is a low probability event, participants in this risk should be aware of it. reference material: https://(x.com)/starzqeth/status/1911591399478444514