The innovative platform is transforming the creation and management of on-chain funds and structured products.
The year 2022 saw catastrophic failures of centralized crypto platforms, leading to loss of funds for ordinary people and professional investors. This has shown that centralized finance (CeFi) platforms cannot reliably provide transparent and secure investment management. Decentralized finance (DeFi), on the other hand, offers transparency and immutability, but is complex and fragmented, requiring extensive technical capabilities and effort to manage. The launch and distribution of a new fund (or structured product) is also complex, time-consuming, and expensive, involving many intermediaries. Velvet DAO is a DeFi operating system that aims to democratize wealth management by helping institutions, investors and traders create diverse financial products on chain.
What is Velvet Capital?
Velvet is a blockchain-based cross-chain asset management protocol that enables organizations to create diverse 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 customers who want to build DeFi products using Velvet, the platform offers a “DeFi-as-a-Service” product that comes with application programming interfaces (APIs).
By integrating with leading DeFi primitives, Velvet Capital enables anyone to create and manage tokenized funds, portfolios, product farming strategies, and other structured products.
Velvet features and benefits
Below are the interesting benefits offered by Velvet Capital:
With Velvet Capital, funds and strategies are used on-chain using smart contracts, which can be automatically tokenized. Fund managers and investors can create or redeem tokens that represent the underlying assets, and the tokens are always fully backed.
Flexible custody options
The platform offers flexible custody options for underlying assets, including non-custodial smart contract vaults, multi-sig vaults, MPCs, or any other option based on regulatory requirements, customer requirements, or internal policies.
High access to on-chain liquidity
Velvet prioritizes delivering superior trade execution through integration with leading on-chain liquidity providers, including leading AMMs and aggregators. The platform also has partnerships with top market participants, encouraging additional liquidity for larger trades.
Smart yield farming
Velvet Capital’s integration with other major DeFi protocols helps users earn more yield from lending, stocking, or providing liquidity. The architecture of the platform allows for automatic yield harvesting, optimization, and auto-compounding of rewards.
The platform offers optional functionality to whitelist wallets that can access the strategy, restrict transfers, and limit the assets and protocols allowed to be used.
Velvet Capital’s Smart Batching feature calculates the optimal path to execute portfolio transactions and batches them into a single transaction, enabling seamless portfolio management with a single click. This can save time and reduce the number of transactions required.
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 and white-label portal
Velvet Capital offers an easy way to generate any type of reporting as per the user’s needs, as funds are managed completely on-chain, secure and transparent. The platform also offers a white-label client portal that allows users to access real-time portfolio data. This feature provides more transparency and control to investors.
Velvet Capital aims to provide the most robust toolkit to seize opportunities in the rapidly evolving DeFi ecosystems. The platform enables users to expand across chains rather than being limited to a single one. This feature provides more flexibility and access to a wider range of investment opportunities.
Tokenmix and governance
The Velvet DAO will introduce $VLVT, a governance token that provides voting power to token-holders who hold VLVT tokens with Velvet. A token utility mechanism encourages stakeholders to act in the best interests of all participants. The protocol will also have a vote-escrow version of $VLVT called veVLVT, which can be obtained by locking up $VLVT tokens for up to 5 years. veVLVT can be used to vote on common Velvet DAO decisions and $VLVT emission allocations on funds and structured products. Additionally, Velvet has a special NFT called Velvet Founders Club NFT, which can only be awarded to early contributors by the core team. NFT confirms OG status and offers various benefits such as double airdrop amount, veVLVT voting power, royalty fee on all secondary sales, and access to exclusive strategies by top partner hedge funds. NFT can only be minted before the $VLVT token airdrop, and users can deposit more than 10 BNB in Velvet.Capital, create a new fund with TVL above 100 BNB, refer 3 users who meet the first two criteria, reporting. Major bugs, and providing feedback as part of user testing sessions.
The total supply is capped at 1,000,000,000 $VLVT tokens, with 5% reserved for airdrop and staking rewards to 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 White Paper.
Security and auditing
Velvet Capital places a high priority on maintaining a high level of security measures to ensure the security of user assets. To achieve this, they have their smart contracts audited by industry-leading security firms, Peckshield, and Shellboxes to ensure that the protocol adheres to the highest industry standards. Audits are conducted regularly on each version of the Protocol to ensure that Velvet Capital’s security systems remain up-to-date and continue to provide users with the highest level of security.
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 seize opportunities in the rapidly evolving DeFi ecosystems.
Stay updated with Velvet Capital and its developments through the following links:
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