Receivables, the new collateral - Erbil Karaman

[Music] he [Music] [Music] a nd all right everybody Welcome to E and welcome to Huma protocols presentation income is the new collateral my name is arbel I'm one of the co-founders of Hima protocol thank you so Huma literally literally was born at e 2022 last year here we were four of us um from the team uh we're here we were participants in the hackathon and we were the defi track winner of the Heaton last year and uh that basically start the Journey of human finance and this year we're coming back as sponsors we just launched Huma as public beta about a week ago uh we have um more than 30,000 users um you know testing and using uh Huma right now we have more than 20 developers uh building on the human protocol uh we'll talk about all of that uh in a minute but first talk about the amazing team behind Huma two of us uh me and my co-founder Richard uh we spent a lot of time at companies like meta and Google try to figure out how to build Technologies for the next billion the next billion and the next billion what are the problems that we need to solve how can we build products that works in a lot of different parts of the world um in different environments as well so that's that's where a lot of our experience and inspiration comes from for building for 99% with human also we have two partners uh two co-founders G and L who are risk experts um coming from incomeb underwriting heterogeneous underwriting at companies like earning a consumer Landing um Pioneer in the United States as well as Open Door one of the Pioneers in pricing and and buying real estate um automatically and um technologically uh with that um let's talk about human Finance what is human Finance it's an incomea Landing protocol for businesses and people around the world what does it mean we talk about next billion quite often we talk about you know gamifying things we talk about you know solving some um experience problems uh going back to our own experience thinking about this problem in our previous careers it all comes down to two things you need to address the real world needs of real business and people you need to create real value you can't just give fight this you need to create real value you need to solve real problems and you need to remove the barriers to entry and we still have a long way to go if you look at the state of thei today it is substantially limited because if you want to participate you know from the well-known defi protocols you need to have a lot of ethereum a lot of rap BTC to be able to back your borrowing and that serves only a small group of people because they are the only ones who have that many ethereum and that many rapid TC to speculate against and it's completely inaccessible to the 99% as we say one leg does not make a good tool if you think about what you need today as a person you go to get a mortgage you need to prove your income you need to create you need to prove your credit reputation and also you need to prove your assets as a business you need business loan again you need to prove your Revenue you need to uh prove your assets and you need to show credit reputation today by only focusing on a few digital assets we cannot make defi work for 99% one L does not make a good stool you will fall so we say income is the new collateral what is income income can be anything on chain or offchain on chain you have invoices you have payment streams you have staken income you have gamey rewards you have Farm yield and this is growing we have a growing income ecosystem and we have growing income portfolios on chain of chain again you have invoices you have e-commerce Revenue subscription Revenue payroll so all of these different income types can be used as collateral and that will give access to the 99% if you want to look at the Huma protocol it's a full stack protocol and there are three layers let's walk from the bottom to top at the very bottom you see the decentralized signal portfolio you need signals to understand risk and underwrite risk and the signals can be income can be assets can be liabilities next thing this is very important you need to tokenize receivables you need to tokenize the income to be used as collateral in the landing pools and we also have a aura system that coordinates different type of credit inputs into the ecosystem as well on top of it we have evaluation agents these are automated underwriting machines that can look at all these different signals and understand the collateral to approve the borrowing from The Landing pools and at the top you have Landing pools that can be built by any business that are owned by any business to support different kind of use cases all around the world our protocol works as a composition at the protocol level but it also works as an SDK that can be embedded into mobile apps and web apps um we also have our own da for some of the use cases to be accessed directly and both borrowers and lenders can interact with Huma through our partners that are building on Huma a protocol is nothing without anything being built on it right we all talk about protocols we like saying protocol but what is the protocol if you do not showcase what's being built on it so the human timeline human story we said we started here last year we won a defi track and we're coming this year we just launched Huma as public beta literally last week and we have more than 30,000 users right now you know trying testing Huma different use cases we have more than 20 developers building on Huma let's talk about the apps to understand the power of this protocol the first use case the first partner we launched with is request request is the largest web three invoicing Network they right now process hundreds of millions of dollars of web3 invoices and they work with a lot of different Dows and and web3 startups and with launching with Huma they are enabling the first web three invoice factoring solution that means that people who have invoices let's say I have $5,000 I sent to my client but you know instead of getting paid in 30 days or 60 days I need to access that money right away because I need to make payments I can go to this integration that we have made either through the request interface or the human interface I can access up to 80% instantly through this factoring pool and it's built on a very simple receivable credit primitive the request invoice is wrapped in a transferable request nftd that can be used as collateral and this is fully automated on chain for underwriting and servicing a very similar use case super fluid is our second lunch partner superfit empowers payment streams to get paid every single block every few seconds but what if you need to access those streams that you're waiting for for the next 30 days what do you do you can't go to a bank and say please give me some credit because I'm waiting for some streams to come on you go to Huma for the first stream factoring solution that has launched on the human protocol you can say I want to get paid for the next 30 Days of My Stream right now and you can do that immediately get access which means again the same primitive same reable CR primitive reps your super fluid stream it's used as a collateral in the landing pool and you can borrow against it fully automated onchain underwriting servicing use case number three we super excited about this one the team is here G XYZ it's built by a team of microland experts in Emerging Markets they have small businesses that they are serving in Philippines in Kenya and those businesses don't have access to credit what do they do they are onboarding those businesses through a very simple mobile app in just 10 seconds those businesses they can be ecommercesport of chain bringing all it collateral information on chain to borrow from defi they're making blockchain Capital accessible to small businesses in every corner of the world we're so excited about this use case and we also have a lot of projects that started e Denver number one crypto credit today we still have a lot of cash ecosystems people are still making a lot of transactions in cash and those people people are usually unbanked how do we onboard them to this web three ecosystems they are starting with a proof of stake solution that confirms the everyday transactions that you make and creates an onchain credit history for you and on boards you onto the web3 call system as a borrower that's incredible the team is here go talk to them I think it's going to change the world project number two crypto credit line they're building crypto credit unions to leverage treasur assets so what happens today is that if you're a d if your weor is start up you might be token Ren but you are cash flow poor you pledge your treasury tokens with others to form a credit union down and you get shares from this Credit Union da that represents a diversified token portfolio and those shares can be used as collateral to borrow from defi solves the cash flow problems of the web three startups in Dows creates a a credit union creates an accessible Fair ecosystem for everyone the team is here go talk to them e Denver project number three in real life trust a lot of us have this problem we have family and friends that sometimes wants you know to borrow some money from us or sometimes you want to money you know borrow B for them but who keeps any party accountable right the moment comes that they should be paying you they don't pay you what do you do so they have cre Ed A system that orchestrates all of this trust on chain uh with trust tokens that can be used as collateral to also borrow against and they have social recovery mechanisms for people who might be noobs don't know anything about webtree so whoever in your close Circle doing peer-to-peer Landing you know your friends and your family can help you recover your wallet because most likely you will lose your seed phrase project number four tribe credit right over there land and borrow unanimously with friends it's an Incredible use case a very simple mobile web interface that doesn't require to actually have any wallet anything else you just take $100 to say I'm going to approve these friends that have I have with their phone numbers so that they can actually borrow from these Landing pools those take dollars act as a first loss capital for your friends what it enables is that then the tribe credit can use that state capital to access senior pool as a leverage and all of their performance is badged and transparently published on chain which means the senior pools actually understand the performance of these Landing opportunities and because the junior trench are taking the first loss Capital risk anyways they're able to provide Capital to basically people who are need access to Capital anywhere around the world just by having a phone number that's all you need project uh get credit I love it because as you know a lot of people you know in emerging markets today are starting to get into this developer ecosystems and developers are the most credit worthy individuals I was a bro student in Turkey I was also a very good open source contributor and that changed my life that gave me opportunity to come to you know Bay Area get great jobs and you know 100x my family is worth uh but before I did that I had zero access to credit nobody cared I was a top-notch open source developer as a student in Turkey but what if we cared what if we use it information as a credit to be used on chain to borrow against what if someone like good credit looked at all of that utilizing validators utilizing proof of stake solutions to actually start your credit Journey on chain I think we can change the world salus meant today you do not have when we do not have a sustainable nft ecosystem especially with royalties going away we need to create more sustainable relationships between NFD creators and NFD buyers what happens is they have built a way to commit your relationship to your buyers by putting your proceeds from your nftd mint into a vault by committing longterm to keep your NFD process into the VA with your borrowers we actually create a yield bearing system that can be turned into income so instead of cashing out right away and letting Traders you know take all of the advantage you're putting into the proceeds and you're taking income as borrowed from the you know human protocol Landing integration and those V shares that you have again are used as collateral in landing it's incredible use case I think it's going to create a more sustainable nft ecosystem around um different chains last project this is one of the things we wrote about now light paper about a year ago and we're so excited to see a team building this a credit line for every wallet it's an insane idea to think today what we have the EA wallet that everybody uses is a broken debit card it's nothing else it's a broken debit card it only works sometimes and it only works for some of the assets that that you're holding but what if we turn that into a credit wallet what if it worked more like a credit card and the team has built a smart contract wallet on ZK sync account obstruction we didn't have a ZK sync solution ourselves we were only on polygoni and Main net they did the you know deployment for us so now humo protocol is also on ZK sync and they have built these credit lines underwritten using different onchain offchain signals but what's more important is that the collateral requirements are met by Hybrid cost Solutions within the wallet so think about it today our Landing pools are extremely centralized you need to put the collateral into pool which actually centralize the collateral itself and makes it you know um uh vulnerable to rock pools makes it wable to whoever has the you know um multi W you know access to those Landing pools but what if you make that Landing pool disappear what did that Landing pool that credit line that credit was attached to the credit wallet itself you decentralize the landing pools completely and I think this is going to change the whole ecosystem once we enable wallets that work like a credit card we have many more projects being built on hum protocol I don't have enough time to go through all of them but all of those teams are here right now we are here come and learn let's build D5 for the 99% let's go [Music]