Unlock On-Chain Credit and Advance Cash Flow with Huma

Transcript

foreign what's going on guys welcome back to the roll up YouTube channel super stoked to have Richard on the channel today and we're going to talk about Huma Finance Richard before we get into Huma can you tell us a little bit about yourself uh and how you got started in web3 yeah thank you thank you for the Lua and Rob get me on the call Super honored to be here Richard you a co-founder of human Finance a human is an income back the D5 protocol and we are getting more into that and myself is before this I was a CTO for a pretty sizable fintech company called earning we enable people to

access their future paycheck and we are engineering about 627 billion dollars a year now and we were able to manage it and risk class at less than one percent I use a lot of income trying to understand people's income and use that as as a key elements of us to do the underlying team before that I did my own startup deep.ai we use a machine learning to match people with red jobs it was acquired by Facebook in 2019 then right before that thank you and I spent a bunch of time in Google and build a few zero to one product some 60s some didn't and but it was really really

cool and I think a product probably some of your audience might be using including myself still using called Google fi so Google's a phone service provider yeah so that was you yeah yeah I was a head of engineering for Google fi yeah awesome awesome man I I've I've been hearing more about Google when it comes to Ai and their their vision family did you have any experiences with uh some AI while you were at Google and and like their vision oh sure I think no first of all I would say the AI I experienced as that generation in Google or in my first

startup which is a very very different flunter days AGI you know that's very very different because that's more like a baby step 30 is a much much bigger scale and obviously in Google very early days when I was working on Google offers and we we nearly use machine learning trying to understand people's using all kinds of signals understand people's commercial intent then we can Target people with the right offers into their wallet definitely that probably was the first exposure in my career into AI then when we did the AI we we try to understand all the jobs I understand you and use all kinds of

data trying to match you with the right jobs so that was my second exposure but in terms of today's you know because I had CPD and Google some response all those things I appears that I'm outside Google I'm reading the same story as you know as you do and the competition between Google and Microsoft and the chat CPT very very interesting very very fascinating yeah yeah it's a race right now you know between like IBM Google Microsoft they all have these competing AI Technologies and we'll see which one gets adopted um both on the front end like you know the users which ones they're interacting with as well as on the back end how you know they are all kind of like using the

same training data and and sets some of them have certain biases you know like chat GPT yeah it'll it'll kind of talk about someone but not someone else and and it's very interesting to see like how certain AIS will respond differently about certain topics so yeah yeah yeah definitely interesting to say but from my personal perspective I look at different companies DNA and the Googles is a technology company yeah and some other company Microsoft thing is more new yearly exceptional in inter Enterprise application and also Google is probably about six months behind and I personally feel bonus to do a catch up

interesting question is how how have those web 2 experiences both in entrepreneurship and then and then in AI working as head of engineering at Google Phi how have those experiences uh affected your web 3 Journey uh that's a very very good question I maybe I can first jump in I firstly exposed to crypto in 2017. when I was doing deep.ai we seriously considered whether we would want to embrace crypto and what happens is that because I truly believe in this community ownership and so when you build the ecosystem you

allow all the participants to become the owner of the platform and they can potentially make decisions about this I think that's an evolutionary and that's totally fair in my view you ask my video about web 2 I appreciate all the companies and paid my you know New Year to help me financially and you're also helping me to grow as an individual but I also see the web web 2 companies created the most unfair value distribution in human history all those slots are larger platforms they use all our data and build massive systems and create a lot of economic value but all those companies their investors and capture all the values the

user student now I think that is the biggest driver for me to see I want to build into web 3 and so that that value capture and distribution become more fair and I really feel very very passionate about that so that's why when this time when I started looking to starting another company I shared very quickly I jump into web 3 this centralization meaningful Community ownership very very deep to my heart so that's why I jump into here yeah you you mentioned the value capture and then also the value distribution and yeah web3 does does both parts you know web 2 is very good at capturing value but then

they didn't do a good job of Distributing it fairly totally yeah community and web free now we have the tools through tokenized communities to distribute the value more equitably across who is producing the the value which in a lot of social media cases is uh users providing their data and their posts in some Financial applications it's providing liquidity and now we have the tools to to more equitably distribute value across based on people's based on people's contribution in terms of building the ecosystem that's cool to be fair yeah right right uh an equitable distribution based on who is making those contributions and I

I totally I see how crypto enables this so so let's talk about humor um you know now after you have those web 2 experiences uh let's dive let's dive a little bit deeper into Huma and how you guys are now embracing these crypto principles yeah yeah totally a lot so first let's talk about what whom I use right so today you look at today's D5 if I had a lot of success I really love a lot of different protocols I play with them and engage with them and but they are very limited because the building beautiful one use case the trading use case the building for the speculators but the new year

they don't bring much value to 99 of the people around the world and not only people more important businesses as well and you look at real life nandy and yo they look at people number one is income because your future income you receivables your individual income is the most non-reliable signal about the ability your ability to Payback taken away you should credit your reputation you know the your pastor history the third one is some assets as a backing but usually you put asset is smaller pretty much smaller low compared with the other two but in in defect today you

can only use a few crypto assets as a collateral because of that they don't really understand a lot about your other ability so the use cases they can support is only just treating use case which is really really limited from you're asking my question from my web to experience there is one thing web 2 doesn't really get or the web Street does many things good but there is one thing I think web 2 people put another energy how do I provide value to people how do I solve real problems so that I'm so valuable and if I don't have value my product and user don't have product micro feed that's where my web 2 experience will help us we near the

focus some leverage whatever web series principles but on top of that create a real value for 99 of the business and consumers around the world so that's why we're building up income-backed defect protocol for the 99 percent got it got it so um part of distribution of value is embracing these crypto principles and now you're incorporating web 2 principles as well to create real value by solving real that's right so that's right it is I want to dig deeper about into how Huma works and are okay so let me let me try let me make

sure that I have it uh a a good understanding so um by going on Huma I can prove my income sources uh maybe on chain and off chain option yes I can I can get an advance on my income by by borrowing from Huma and then when my income comes in I I give it to Huma and repay my my loan uh that might be one use case to us uh to apply so let me see there are two fundamental believing that a human has number one income is the most reliable signal about the 19 we want to near the understanding income and tokenize it and use it as collateral so the first one is

income your future income as a collateral that's number one number two We Believe The Lending in different parts of the world are different so basically your could be your operational regulation and the economic parameters like the inflation rate which were substantially impact your APR IL all those are different it's very hard for you to build one fintech one vending product for everybody it's much more important to build a protocol so that you can enable a lot of those fintechs who are crypto forward to building on top of humor so that's why today we really work on with a lot of

fintech companies but they're very crypto forward so we enable them to launch with us without building the D5 infrastructure by themselves we look at ourselves as large mnemonica futuristic different infrastructure company to enable a lot of crypto forward defendant companies for example and we the first company we are launching with is called ja they are more like a micron 19 company across Emerging Markets African social Asian but they're very decrypted forward the founder has two believe uh number one I want to be able to access Global Capital not only the capital in the market that I'm going to extend the credit to because this would has a lot

of business value for them and also for other parties that participated because if they can access lower Capital custom Capital that means they can offer to their borrowers at the North Castle as well brings the value to them from them perspective they probably have more zoom potentially create value for for their protocol the other part of the new year also improves the community ownership concept the new year they want to say transform the relationship between borrower and and then there they want much more Empower their borrowers so that if they can have a lot of loyal dollars then they will be able to attract a lot of high quality lenders as

well so it's very very crypto Forward Thinking another partner where I work with is called arf so the main is reported that a cross-border limited companies usually you take about five to seven days to settle they actually want to enable instant settlement they use a usdc in the back so that the receivers get the money immediately and so but somebody needs the front of the money they're looking for yeah D5 protocol to support it and humor is right there to enable them to launch whatever their product and they want to do and we build our infrastructure in such a way have multiple layers and people just simply whenever this new guy comes in and we

look at their lead and they only need to deploy our contract change some configurations they don't really need to turn a single line code but they're able to leverage many things that we have we have built in human jaw and and others uh look at the uh credibility like the social credit and the income off chain and they make they make decisions based on this off chain info to determine how much uh someone can borrow on chain yeah yeah so let me get him when when they're deeper about the human protocol so the protocol has three layers the first layer is allowed we it's something we call the decentralized signal portfolio

we allow people to be able to write all kinds of adapters so that we are able to understand all kinds of income sources and so that was the first layer that could be income could be your credit reputation all the other things you put all together then on top of that the second layer is something we'll call the advantage agent which you think about more like a traditional fintech or self uh the more like the underwriting engine so for different use cases you can have a different underwriting engine we call it Advantage agent now on top of that you have all kinds of pools for jar they're going to deploy one pool for RF they deploy another Pool super fluid another Pool and request another pull so

each one of them have different pools the different pulls apart by different underwriting engine evaluation agent is even a engine use different signals we provide this infrastructure allow developers to come in to build all kinds of adapters so that we can understand more and more signals then a lot different business use cases to be deployed then they can use a different the underwriting engine to the power them can you give a few examples about adapters um like what like what like what are a few adapters that developers might build so for example I you know a few adapters we already built with request of Finance we want to understand your request the

finance use the property is the largest Unchained invoice platform so if uh rob you have an invoice to Andy and we want to you normally Andy will pay you in 60 days later but you need that money right now and you want to factory it and so what do we enable you that that in that adapter enable you basically means that invoice as a as an nft then we can understand we we understand okay that nft basic requested platform would understand whoever owns that nft would own the future payment stream so you can come to humor then treating that nft to

us we fund your 80 percent of your money and then 63 days later when ndp's money and that money DirectX robot into human pool we get paid then we say oh the Rob has already we already funded him eighty percent of my nurse a couple points of fees this is 78 and then we also have another 20 nominee let's dispersed to him so then the entire transaction is finished you were able to get access to your money much earlier but then we use that capability to uh support you and the adapter is near to understand that the income and tokenized that income perfect got it so one adapter is to read these invoices you

can turn uh one of these invoices into an nft with this adapter um it reads the metadata of this nft to determine how much income is produced by this uh invoice and then I can take that that nft which that that invoice give it to Huma um get paid for it up front and then Huma gets however much they they paid up front back when the invoice is paid yeah that's right what are the other two layers so that that is the adapter that reads the internet so let's look at the other segment there is what we call the advantage agent in that case right so if for if Robinson is how about you guys crude

and you just artificially create a fake invoice then if I then the 80 percent to you then I'm screwed right so in that case basically we have an event agent to New Year to understand Rob's credibility as a payer uh you as a as a as a receiver particular Rob and Andy I'm sorry I keep on missing the names and is could have been it as a player what's like his history and honorable versus the past payment and it was a relationship between you guys so over there with new car additional adapters to be built for example what's your history what's your payment history

record and what's your ancient kind of for reputation those type of things we try to understand it then all those Secrets feed into an underwriting engine evaluation agent that's there that's it credibility or do you look at off-chain credibility as well basically the platform enabled developers build all kinds of things okay you each one of you were based on your use case you decide what do you do you can use a purely ancient signals you can also use some options compilation got it got it and then that makes sense and then and then finally what is the third the third layer third or is a pool right you that's that's basically like any other

D5 protocol you have the pool available then the lenders will be able to contribute the capital the borrowers are able to interface with the with adapt to interact with yes and you know our case is not only we have adapt but also we provide SDK so that our partners can distribute it through their dabs as well right right and that's that's the normal interoperability model where someone else can deploy a front end and they can plug into the same Huma protocol on the back yeah yeah exactly exactly and the the community at large can provide liquidity in one of these pools and then when I request uh you know the the Advance on my 60 days invoice it'll

come from some permissionless uh lender who lent uh tokens in this pool and that ends up paying me ahead on my invoice yeah so that's that's correct from process perspective uh need to be the details today most of the borrowers on our platform will be businesses okay the business is the emerging market and since in the business Emerging Market many of them actually Record local regulation requires them to understand who are the lenders so the lenders will not be permissionless the lenders user will require qicqib depends from our protocol perspective we don't have that requirement but the pools that are going

live first most of them have that requirement got it got it for anyone who's listening because our audience is it is a lot of entrepreneurs and Builders and developers as individuals but a lot of these Builders are also part of businesses who may be lending and maybe borrowing on-chain and blockchain for anyone who's listening that is part of an organization like this how can they get involved if they want to start using Huma as a borrowing Source or a lending source so I think you'll find your audience they can participate in human protocol in three ways the first one especially if you are close to La fintech that is crypto

forward particularly in emerging markets and you may want to check with us and we will not only enable you to launch a poor access to additional Capital but there will be enable you to access to a lot of what crypto what the default can offer to you we have a lot of other opportunities for example we enable you to Showcase your real world and receivables when is the reciproc coming in when does it get paid what's a performance so that if you have high quality receivables we are able to showcase for you then you are able to access a lot more Capital than otherwise that's number one number two obviously if you are dizzying and you know you know the trick and how to engage with

the early stage protocol and you contribute to it and you not only the world ordered in the typical you know DFI crypto world but in this one your money will generate a real yield and we'll talk about middle tens we are not talking very no yield because the new year you're helping emerging business in Emerging Market they can deploy the capital bring a lot of value there we need to borrow the money 10 to 20 in that range that's real yield plus whatever typical you know crypto world and rewards so that's what you're looking for the third one if as a developer and you can contribute if you understand certain income sources talk

to us you can potentially contribute as an adapter and sure we'll have bandages we'll have ongoing reward if your adapter is going to be used in a big way in the future you probably get a new word in a big way as well and you can also if you're machine learning people you can write or can the underwriting components or you have a very special domain knowledge it's about this counterwriting in certain area contributor evaluation agent you play a big role there or if as a business you have a lot of connections I happen to no surprise him financing very well I know a lot of borrowers I know a lot of lenders if you want to bring that ecosystem cool you come here create a

pool called you become a pool owner then you can build that ecosystem you will get compensated as well got it so there's plenty of plenty of ways to contribute both as an individual whether if you're a technical individual take a look at some of the bug the bounties um for building uh for building adapters as well as squashing any bugs as always you know as an individual it pays to find early protocols uh before they they really increase tvl so you know there are incentives for uh individuals as well as businesses like setting up pools and lending and borrowing and advancing on income streams um you know we'll we'll link Discord and

we'll link Twitter in the description below so if you guys are are interested you fall into one of these groups either as a business or an individual you can click on the Discord Link in the description you can reach out to Richard or the rest of the Huma team and uh find out more ways to contribute um you also mentioned you know some of the incentives individuals and contributors can get incentivized in a big way does that mean token or what you know what what does that mean so for our perspective do I not at this moment we focus on just building the protocol driving adoption sure from our longer term plan that's part of it but right now we focus on building the ecosystem at this moment yeah it makes

sense and will you actually believe in when you build a sustainable ecosystem whoever is contributed in that new world will be much more sustainable as well yes yes sustainable rewards for convicted contributors uh goes a long way for supporting uh token price as well as Equity price any kind of contribution uh is met with the appropriate incentive um awesome Richard it was an absolute pleasure having you on um for anyone who's listening like we said we'll link all the communication channels in the description so you guys can reach out to Huma and get involved um is there anything you know that that we missed that you'd like to tell the audience our project was starting from East

Denver hackson last year right so we we went there and we thought okay you know we were learning about crypto and doing but nothing is better than just building something concrete and we just built it and turned out that we we were a winner for the default track and from there we just you know we lose the pretty decent seat around 8.3 Million Dollar City land and the last May and then we nudged the protocol and then this year we went back to East Denver as a sponsor and turned out there were more than 20 projects submitted to our platform many big names had necessary submissions even metamask

has less submissions than us many people were building with us three of the teams already and actual ranked in the finalists top 18 like equipped crypto credit and there are rhinestone and the travel credit and they were building on top of human we were so so excited and so many people were building with us and our Discord just grew from 1000 people to over 40 000 people in 10 days just during East Denver many people were talking about us we were supposed to be a new project nobody knows but it turned out when we talked about a we are building income back the default and people just said yes that makes sense

and we need it and then that's a new year they get a lot of momentum going and right now we are very busy to just get unscheduled to lunch with a lot of Partners so that we can bring another impact to to 99 percent of the business and the consumers and under the ones in the world yeah phenomenal that's great congrats on the hackathon and then and then on the seed round as well if there's so much Alpha in those hackathons all around the East Global events um you know that for for anyone who's listening and you're curious whether you're a developer or not just keep an eye on who wins the hackathons and you have a very uh like foundational look at the next project coming out who are

already building something successful after you know uh winning some of these hackathons so that is definitely something to keep an eye on for any early uh and Innovative products yeah cool yeah that's the I would assure uh encourage you the same thing you have some ideas just pick up your sleeve build it and then when when it has the interesting angle and people will give you that signal this is cool just like when we were in Denver last year we got a lot of signals some of the partners like super free that was super supportive what you guys are doing wow you allow people at the border against their future stream so cool you guys should build it and we just continue to build it and that's how you get it get the feedback then from

there you could build it you have the conviction and from there you build your traction yeah wonderful well Richard thanks again for coming on this was a blast and as more Pools and More adapters are built on Huma I would love for you to come back and share some of the new use cases that you guys you guys see awesome thank you so much Rob yeah thank you cheers