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Introducing Velvet

The year 2022 saw catastrophic failures in centralized crypto platforms, leading to the loss of funds for ordinary people and professional investors. This showed that centralized financial platforms (CeFi) cannot reliably 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 several intermediaries. Velvet DAO is a DeFi operating system that aims to democratize asset management by helping institutions, investors and traders create diversified on-chain financial products.

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 farming strategies.

For institutional customers looking to build DeFi products using Velvet, the platform offers a “DeFi-as-a-Service” product that comes with an application programming interface (API).

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 and Benefits

Below are the interesting benefits from Velvet Capital:

Automated tokenization

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

Flexible custody options

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

Superior access to liquidity on the chain

Velvet prioritizes offering the best trade execution through integrations with major on-chain liquidity providers, including leading AMMs and aggregators. The platform also has partnerships with top players in the market, which provides extra liquidity for larger trades.

Smart Yield Farming

Velvet Capital’s integrations with other leading DeFi protocols help users earn additional returns from lending, staking or liquidity. The platform’s architecture allows for automated harvesting, optimization and automatic compounding of rewards.

Permission Capabilities

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

Smart batching

Velvet Capital’s smart batch function calculates the optimal route to execute portfolio transactions and groups 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 strategy creation and automation 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 all types of reporting according to user needs, since funds are managed completely on-chain in a secure and transparent manner. The platform also offers a white-label client portal that allows users to access portfolio data in real time. This feature provides greater transparency and control for investors.

Cross chain functionality

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

Tokenomics and governance

Velvet DAO will introduce $VLVT, a governance token that gives voting rights to token holders who stake their $VLVT tokens with Velvet. The token utility mechanism encourages stakeholders to behave in the best interests of all participants. The protocol will also have a vote-locked version of $VLVT called veVLVT, which can be obtained by locking $VLVT tokens for up to 5 years. veVLVT can be used to vote on general Velvet DAO decisions and $VLVT emissions allocation across funds and structured products. In addition, Velvet has an exclusive NFT called the Velvet Founders Club NFT, which can only be given by the Core Team to early contributors. 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 from top partner Hedge Funds. 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 over 100 BNB, referring 3 users who meet the first two criteria, reporting major bugs, and provide feedback as part of user testing.

With the total supply limited to 1,000,000,000 $VLVT tokens, 5% is reserved for airdrop and staking rewards for veVLVT holders to start up initial decentralization and encourage stakeholders to lock their tokens. Learn more about the token allocation and emission schedule via the Velvet Whitepaper.

Security and audits

Velvet Capital prioritizes maintaining first-class 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 the protocol adheres to the highest industry standards. The revisions are regularly performed on each 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 toolset to capture opportunities across rapidly evolving DeFi ecosystems.

Keep up to date with Velvet Capital and its developments via the following links:

Website | Twitter | Telegram | Documents