The focus of Huma Q4 is on yield tiering for DeFi Looping. Huma has about 12% native yield with a zero default rate. Currently, the borrowing interest rate for Solana USDC is often only 5-8%. After looping several times, the overall APY can reach 30%-50%. A portion of this yield will be allocated to two vaults: one is an insurance fund supported by staking SOL, and the other is the Huma staking vault, which will provide boost incentives for looping. This way, the insurance fund can provide a buffer for users of looping, increasing the scale of looping. On the other hand, it empowers Huma staking, allowing users to earn yields directly by staking Huma, rather than just rewards, creating two distinct groups of users who earn yields from staking and saving. A portion of the Huma vault's yield will also be used to buy back Huma, ultimately facilitating a positive feedback loop. Overall, this is equivalent to creating a scenario for the growth of Huma's dual-token economy through DeFi...
Big Alpha
@humafinance co-founder @DrPayFi just announced at the PayFi Summit that Project Flywheel will launch in Q4, initiating the growth wheel for $HUMA.
Users staking SOL or depositing USDC and HUMA can achieve over 30% combined returns; at the same time, buybacks will be initiated to increase demand for $HUMA and boost its price.
It includes three parts:
1. PayFi Reserve: Establishing the Huma PayFi Reserve (HPR) based on Solana nodes, where users stake $SOL to support PST and other PayFi/RWA assets.
2. Looping Loans: Looping PST to achieve over 30% returns in stablecoins and $HUMA, which is very competitive.
3. Huma Vault: Users deposit USDC and HUMA, leveraging high returns obtained through Looping. A portion of the Vault's income will be used for buybacks, forming the $HUMA flywheel.
A very clever design that uses the DeFi flywheel to attract more people to stake SOL, ultimately increasing demand for Huma.
LHG!
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