PayFi Stack: Can money run like data?

When it comes to finance, everyone has some experience: slow transactions, high costs, complicated processes, and various regional restrictions.

The PayFi stack launched by @humafinance aims to solve these problems.

Build a new framework on the blockchain that breaks down tasks like paying and borrowing into several steps, with each step managed separately, ultimately making the entire process fast and smooth, while also saving costs.

Its inspiration actually comes from the OSI model of the internet. Just as the internet breaks communication down into seven layers, with each layer doing its job well to enable smooth communication between devices worldwide, the PayFi Stack also divides financial operations into six layers, with each layer coordinating with the others.

■Trading Layer
The bottom layer is the trading layer, relying on blockchains like Solana and Stellar, responsible for handling transaction speed, cost, and security.

For example, Solana takes only 400 milliseconds to produce a block, and the transaction fees are low, which is very important for small real-time payments.

■Currency Layer
Above is the currency layer, mainly using stablecoins like USDC, to avoid the drastic fluctuations of cryptocurrencies, as well as stablecoins that can earn interest.

For example, USDM can be used as money and can also earn some yield, which is quite practical.

■Custody Layer
The custody layer addresses the issue of [where to safely place money] by using MPC technology (multi-party computation) or smart contracts to manage assets.

It allows for joint management by multiple parties and real-time settlement, without the need to wait for the custodian to process the transfer slowly like before.

■Compliance Layer
The compliance layer is also crucial, after all, finance cannot be separated from regulation, which needs to connect with the laws of different countries.

For example, KYC, anti-money laundering, and keeping up with new regulations like Europe's MiCA so that transactions on the blockchain can also be compliant.

■Financing Layer
The core is the financing layer, which connects those in need of money with those who have spare cash.

For example, transferring real-world assets (like real estate, accounts receivable) onto the blockchain, breaking them into smaller pieces, transparent pricing, and risk assessment can also be automatically completed by smart contracts.

■Application Layer
At the top is the application layer, which is the APP that ordinary people can use directly.

For example, payment tools and lending platforms can utilize the functionalities of the following layers without having to build their own systems from scratch, making them both secure and user-friendly.

These six layers are interlinked, streamlining the financial processes from the root, and Huma provides a new possibility for a more efficient financial model #HumaFinance