Velvet Capital: DeFi Operating System for Creating Seamless DeFi Products

by BSC News

April 10, 2023


The innovative platform is transforming the creation and management of on-chain funds and structured products.

Introducing Velvet

The year 2022 saw catastrophic failures of centralized crypto platforms, leading to a loss of funds for ordinary people and professional investors. This showed that centralized finance (CeFi) platforms cannot credibly provide transparent and secure investment management. Decentralized finance (DeFi), on the other hand, provides transparency and immutability, but is complex and fragmented, requiring extensive technical capabilities and effort to manage. Launching and distributing a new fund (or structured product) is also complex, time-consuming, and expensive, involving multiple intermediaries. Velvet DAO is a DeFi Operating System that aims to democratize asset management by helping institutions, investors and traders create diversified financial products on-chain.

What is Velvet Capital

Velvet is a blockchain-based Cross-Chain Asset Management protocol that enables institutions to create diversified DeFi products across digital assets and ecosystems.

These DeFi products can range from simple tokenized funds and crypto portfolios to complex structured products and advanced yield farming strategies.

For institutional clients who wish to build DeFi products using Velvet, the platform provides a "DeFi-as-a-Service" product that comes with application programming interfaces (APIs).

By integrating with major DeFi primitives, Velvet Capital enables anyone to create and manage tokenized funds, portfolios, yield farming strategies, and other structured products.

Velvet Features & Benefits

Below are the interesting benefits provided by Velvet Capital:

Automated Tokenization

With Velvet Capital, funds and strategies are deployed on-chain using smart contracts, which can be automatically tokenized. Fund managers and investors can create or redeem tokens representing the underlying assets, and the tokens are always fully-backed.

Flexible Custody Options

The platform provides flexible custody options for the underlying assets, including non-custodial smart contract vaults, multi-sig vaults, MPCs, or any other option based on regulatory requirements, client needs, or internal policies.

Superior Access to On-Chain Liquidity

Velvet prioritizes providing the best trade execution through integrations with major on-chain liquidity providers, including leading AMMs and aggregators. The platform also has partnerships with top market participants, incentivizing additional liquidity for larger trades.

Smart Yield Farming

Velvet Capital's integrations with other leading DeFi protocols help users earn additional yield from lending, staking, or providing liquidity. The platform's architecture allows for automated yield harvesting, optimizing, and auto-compounding of rewards.

Permissioning Capabilities

The platform offers optional functionality to whitelist wallets that can access the strategy, restrict transfers, and limit the assets and protocols permitted to be used.

Smart Batching

Velvet Capital's smart batching feature calculates the optimal route for executing portfolio transactions and batches them into one transaction, enabling seamless portfolio management with a single click. This can save time and reduce the number of transactions required.

Seamless Integration

Velvet allows anyone to write and execute algorithmic strategies using an easy-to-use API that enables creating and automating strategies with familiar tools. This feature provides flexibility and customization options for investors and fund managers.

Reporting & White-label Portal

Velvet Capital offers an easy way to generate any type of reporting as per user needs, since funds are managed completely on-chain in a secure and transparent way. The platform also provides a white-label client portal that allows users to access real-time portfolio data. This feature provides greater transparency and control for investors.

Cross-Chain Functionality

Velvet Capital aims to provide the most robust toolkit to capture opportunities across rapidly evolving DeFi ecosystems. The platform enables users to expand across chains instead of being limited to a single one. This feature provides greater flexibility and access to a wider range of investment opportunities.

Tokenomics & Governance

Velvet DAO will introduce $VLVT, a governance token that provides voting power to token-holders who stake their $VLVT tokens with Velvet. The token utility mechanism incentivizes stakeholders to behave in the best interest of all participants. The protocol will also have a vote-escrowed version of $VLVT called veVLVT, which can be obtained by locking $VLVT tokens for up to 5 years. veVLVT can be used for voting on general Velvet DAO decisions and $VLVT emission allocation across funds & structured products. In addition, Velvet has an exclusive NFT called the Velvet Founders Club NFT, which can only be granted by the Core Team to early contributors. The NFT confirms the OG status and provides various benefits such as double airdrop amount, veVLVT voting power, royalty fees on all secondary sales, and access to exclusive strategies by top partner Hedge Funds. The NFT can only be minted before the $VLVT token airdrop, and users can earn them by depositing more than 10 BNB on Velvet.Capital, creating a new fund with TVL above 100 BNB, referring 3 users that meet the first two criteria, reporting major bugs, and providing feedback as part of user testing sessions.

With the total supply capped at 1,000,000,000 $VLVT tokens, 5% has been reserved for airdrop & staking rewards for veVLVT holders to bootstrap initial decentralization and incentivize stakeholders to lock their tokens. Learn more about the token allocation and emission schedule via the Velvet whitepaper

Security & Audits

Velvet Capital places a high priority on maintaining top-notch security measures to ensure the protection of user assets. To achieve this, they have had their smart contracts audited by industry-leading security firms, Peckshield, and Shellboxes to ensure that the protocol adheres to the highest industry standards. The audits are conducted regularly on every version of the protocol to ensure that Velvet Capital's security systems remain up-to-date and continue to provide the highest level of protection to users. 

By enabling institutions, traders, and investors to create a range of on-chain funds and structured products, Velvet DAO aims to provide the most robust toolkit to capture opportunities across rapidly evolving DeFi ecosystems. 

Stay updated with Velvet Capital and its developments via the following links:

Website | Twitter | Telegram | Docs

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