HUMA Finance token falls over 45%, erasing post-launch gains

At the base is the transaction layer, which uses Layer 1 and Layer 2 blockchains to ensure high-speed, low-cost, and secure transactions. Above this is the currency layer, which manages digital currencies—especially stablecoins like USDC and PYUSD. These stablecoins ensure price stability and regulatory compliance, with some offering yield to offset transaction costs. The currency layer also includes programmable stablecoins that embed conditions directly into payments.

The custody layer focuses on secure and efficient asset management. It supports various custody models, from institutional solutions using multi-party computation to decentralized smart contract-based methods. These systems allow real-time settlements (T+0) without compromising asset control or security.

Next is the compliance layer, which handles regulatory requirements such as KYC, AML, and stablecoin licensing. It integrates real-time compliance checks into the transaction flow, adapting to regional regulations like MiCA in Europe or frameworks in Singapore and Japan.

The financing layer enables on-chain capital markets by connecting fund supply with demand. It allows the tokenization of real-world assets, structured using smart contracts to create different risk tranches. Finally, the application layer sits at the top, allowing developers to build financial products like payment gateways, lending platforms, and investment tools. These applications draw on the capabilities of the lower layers to ensure speed, compliance, and ease of use, emphasizing strong UX design and secure transaction handling.

HUMA is central to the Huma Finance ecosystem, functioning as a governance token. Its also used for staking to help secure the network and reward participants. Additionally, HUMA serves as an incentive mechanism, distributed to liquidity providers, borrowers, and active users to drive ecosystem growth. Holding or staking the token can also provide eligibility for future airdrops, with the second distribution scheduled to take place approximately three months after the TGE.