In this episode of BidCast, Jason Kam interviews Richard and Erbil, co-founders of Huma Protocol, about their Total Active Liquidity (TAL) approach, which focuses on capital efficiency and sustainability rather than just chasing TVL. They discuss how their $100 million TAL is deployed into PayFund for payment financing and DeFi opportunities, generating significant volume and revenue. Erbil explains their two main use cases: settlement liquidity for cross-border payments and stablecoin bank cards, highlighting the transactional credit aspect and the potential for substantial growth. Richard details their yield strategy, charging business borrowers between 12.5% to 15% annually, and the different modes for LPs to participate, resulting in a healthy net interest margin. They also discuss future scaling plans, aiming for $500 million TAL by the end of next year, and the potential for expansion into credit card settlements and partnerships with major players, emphasizing their commitment to risk management and sustainable growth.
