What is UMA? Project introduction

Image:https://huma.finance/

HUMA is a decentralized financing protocol built on the blockchain, supporting users to finance through future cash flows. Its design concept is inspired by the traditional finance model of ‘Buy Now, Pay Later’, known as PayFi on-chain. HUMA aims to bridge the gap between real-world credit data and crypto finance, enabling those with stable income to obtain liquidity support in Web3.

Currently, UMA supports multiple mainstream stablecoins, including USDC, USDT, DAI, etc., with partners including Stripe, Request Finance, Circle, Superfluid, and other mainstream payment and financial infrastructure platforms.

UMA’s core product: PayFi mode detailed explanation

Image:https://huma.finance/

PayFi (Payable Finance) is a financing method that uses expected income as collateral. For example, freelancers or creators can pledge their future income from Patreon, Substack, or wage platforms to HUMA in advance to obtain immediate liquidity.

This model is more inclusive than traditional DeFi collateralized loans, as it does not require users to hold a large amount of assets, only to prove their “future payment capability.” The UMA protocol builds a composable, low-risk, and scalable credit market by introducing payment flow data and off-chain credit verification.

Why is UMA getting attention on Solana?

In May 2025, UMA announced the presale of the first PayFi project on Solana’s decentralized trading platform Jupiter. Solana’s high-performance infrastructure is suitable for frequent small payments, providing a natural advantage for HUMA’s on-chain cash flow verification. HUMA’s protocol has been integrated with multiple payment platforms, allowing users to flow funds in real time through tools like Superfluid, truly achieving ‘income as assets’.

At the same time, the Jupiter community has shown strong interest in the PayFi model. After the pre-sale news was released, the number of JUP staking users surged in a short period of time, sparking widespread market discussion.

The role and distribution mechanism of UMA token

UMA token is the governance token and incentive tool of the protocol, and holders can participate in protocol upgrades, parameter adjustments, and staking rewards. According to the official announcement, the total supply of UMA is 1 billion, with 9% initially allocated to the Jupiter presale, 10% used for ecological incentives, 15% belonging to the team, 20% reserved for partners, and the rest for future growth and reserves.

In the presale portion, only 10% will be unlocked at TGE, and the remaining 90% will be released linearly over six months to ensure a steady token supply and reduce market selling pressure.

What are the opportunities and risks of investing in UMA?

In terms of opportunities, UMA has taken the lead in the PayFi track, with real-world applications. Its users cover multiple verticals such as on-chain wages, creator economies, freelancer payments, etc., with vast market space.

In terms of risks, UMA’s credit system involves off-chain data, facing audit and compliance pressure, and currently relies heavily on specific payment platforms, with expansion capabilities still to be observed. In addition, user stickiness and TVL stability in the Solana ecosystem will also affect the development of UMA.

Summary

As a pioneer of the Solana ecosystem, the HUMA protocol PayFi is reshaping DeFi in a way that is more closely aligned with real-world finance. It unlocks new possibilities for credit financing with future cash flows, and demonstrates strong growth potential even in a deleveraging bear market.

For users who are optimistic about the future of Solana and Web3 financing, UMA provides a low-threshold, high-imagination investment opportunity. However, before participating, it is still necessary to fully assess the project’s off-chain dependencies, token unlocking period, and regulatory uncertainties.

Note: Gate will launch Huma Finance (HUMA) spot trading at 21:00 (UTC+8) on May 26, 2025.