as we all know huma finance is a payment finance (PayFi) protocol, here is a step by step breakdown of how the onchain settlement for real world payment flows works

↠ tokenization of receivables: when a business (like a payment institution or merchant) is owed money (a receivable), they tokenize that asset. this means they create an onchain digital representation of the future payment. this token acts as a transparent, verified form of collateral

↠ instant financing from liquidity pools: the business presents this tokenized receivable to Huma's decentralized liquidity pools, which are funded by individuals (like you) and institutions

the pool instantly lends the business the requested funds (in stablecoins like USDC) based on the value of the collateral

↠real-time settlement: this immediate stablecoin disbursement allows the business to settle its payments (e.g., pay a supplier, process a payroll advance) in real-time (T+0), rather than waiting days for the traditional banking system to clear the original payment

↠ repayment and yield: when the original customer/debtor pays the business days later, the business uses those funds to repay the loan to the Huma liquidity pool, plus a small fee. this fee is the yield you earn as a liquidity provider

in essence, Huma uses DeFi liquidity to bridge the time gap between a payment being initiated and a payment being fully settled in the traditional system.