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The Rise of PayFi: New Financial Narratives and Application Scenarios in the Solana Ecosystem
PayFi: The Emerging Narrative of the Solana Ecosystem
The concept of PayFi is receiving increasing attention. It aims to realize the original vision of Bitcoin payments, which is to build a programmable currency system within an open financial system, providing users with economic sovereignty and self-custody capabilities.
Unlike DeFi, PayFi focuses more on building products around physical goods and services, belonging to the RWA( real-world assets) track. The core of PayFi is to fully leverage the "time value of money."
Currently, PayFi mainly involves several application scenarios:
Buy Now Pay Never: Pay through DeFi earnings without actual payment.
Monetization for Creators: Helping creators monetize future income in advance to improve cash flow.
Accounts Receivable Financing: Allows enterprises to quickly obtain cash without being restricted by customer payment cycles.
PayFi is not a completely new concept, but it is expected to optimize the traditional financial system through blockchain technology, lowering barriers and improving capital turnover efficiency. Currently, notable projects in this field include:
Huma: A lending protocol for businesses and individuals, supporting future income as collateral.
Arf: Provides cross-border payment services for financial institutions without the need for pre-deposited funds.
Credix Finance: B2B lending protocol, mainly serving the Latin American region.
NX Finance: A yield layer protocol in the Solana ecosystem, providing leverage and farming strategies.
Overall, PayFi is still in its early stages, mainly iterating around two major demands: accounts receivable factoring and cross-border payments. Although there are still restrictions such as KYC, some projects have accumulated certain data, indicating market demand. Whether PayFi can create more innovative products in the future and improve the liquidity of physical assets is worth long-term attention from investors.