Introducing Huma Prime, a brand new mode for Huma 2.0
A Defensive Looping™️ strategy vault, leveraging real yield from PST.
Limited capacity is now open for OG and Vanguard badge holders. Deposit now or switch your Classic and Maxi positions into Prime to earn up to 30% APY.
A Prime Huma 2.0
Prime is Classic on steroids. Prime deposits accrue value through three distinct components:
- Yield from $PST; USDC APY for Classic is 8% starting Jan 5
- Yield from Defensive Looping; risk-mitigated leverage strategy
- $HUMA Rewards; based on multipliers like OG, Vanguard, staked $HUMA
Switching to Prime
- In the Portfolio tab, users can switch locked or unlocked Classic positions to Prime.
- Locked or unlocked Maxi positions should first be switched to Classic, before being switched to Prime.
- There is no $HUMA rewards penalty for switching locked Classic or Maxi positions.
Prime’s lockup mechanism
Users can choose between no lockup, 3 months, or 6 months.
Currently, there is no secondary DEX market for Prime LP positions. Redemptions can only occur on Huma. This means, unlike Classic and Maxi, no early withdrawal mechanism is available for locked Prime positions. Users can withdraw them on Huma once they reach maturity.
Similarly, when switching locked Classic positions to Prime, users must select a lockup option with a maturity date equal to or later than the Classic maturity date. That’s because, while depositing or switching to Prime, lockups start from today. The UI has been updated to make this extra clear.
Defensive Looping™️
Defensive Looping transforms leverage into a controlled strategy by addressing these risks one by one.
- Automated Yield-Based Deleveraging : Prime Watchdog™️ continuously monitors the spread between the Borrowing Cost and Asset Yield. If the cost of debt threatens to exceed the yield, the system triggers a deleveraging event. This "fail-safe" protects the user’s principal before a leveraged loss can occur.
- Primary Market Integration Instead of force-selling assets on secondary markets first, Defensive Looping routes liquidations through the primary market. Redeeming assets at their face value removes dependency on volatile oracles and ensures that a single liquidation event does not impact the market price for everyone. PST Guardian™️ keeps primary and secondary market prices in sync.
- Isolated Reserve Layer (coming soon) Once the Reserve is activated, positions will be protected by this dedicated layer. Because PayFi and RWA tokens are backed by real-world assets and cash flows, these reserves can be mathematically modeled to absorb impairments. Reserve will charge the Prime vault a fee to incentivize deposits.
Join the PayFi Movement
Ready to earn Real Yield? Start earning now: https://app.huma.finance/