What Is Velvet? Exploring the Next-Gen DeFi & AI Trading and Asset Management Platform

What is Velvet?

Figure:https://www.velvet.capital/

Velvet is an integrated AI trading assistant, portfolio management system, and intent execution engine within a Decentralized Finance ecosystem platform. It allows users to trade directly from their wallets, build and manage portfolios, and execute AI-driven strategies without needing to transfer funds to a centralized platform.

Velvet provides four core capabilities:

1. AI Framework (Velvet Unicorn)
2. trading terminal
3. Portfolio Management and Community Investment Fund
4. Customizable white-label Decentralized Finance application

The core functionality highlights of Velvet

• No custodial trading: Users can trade directly on chains such as Solana, Base, Ethereum, and BNB Chain without needing to deposit assets onto the platform.
• Asset Management: Create private or public investment vaults, suitable for KOLs, DAOs, or investment groups.
• Intent Execution Engine: Issue commands for trading, rebalancing, and swapping through natural language.
• One-click yield strategy: Bundle operations such as staking, token swapping, and authorization into a single execution to improve on-chain interaction efficiency.

Velvet Unicorn: AI-driven trading brain

Velvet Unicorn (abbreviated as VU) is the intelligent hub of Velvet OS and is a multi-agent self-learning AI system. It supports natural language question answering, technical analysis, social data sentiment analysis, and on-chain data parsing.

Users can ask VU:

• What new tokens are available on the Base chain today?
• “What do you think of the $VU token?”
• Analyze the trend of $VELVET and predict the price.

More importantly, VU can automatically execute trades or adjust portfolios based on analysis results, truly realizing “AI makes strategies, you make decisions.”

Token Economic Model: The Value Support of VELVET and VU

The Velvet ecosystem consists of two core tokens:

1. $VELVET

As a platform governance token, its functions include:

• Discounted Fees
• Real-time profit distribution (derived from platform revenue)
• Voting rights (deciding on DAO fund usage, integrating projects, etc.)
• Participate in activities such as Launchpad, airdrop incentives, etc.

Staking $VELVET can earn veVELVET (voting locked rights), and the longer the staking duration, the greater the rights.

2. $VU

As the “fuel token” for AI reasoning, used to pay the invocation fees of Velvet Unicorn. Among them:

• 33% burn
• 33% enters the R&D funding pool
• 33% allocated to veVELVET holders

This design ensures that the more frequently the platform is used, the more actively the repurchase and destruction of VELVET occurs, forming a positive cycle.

Latest developments and market trends

According to the official roadmap, Velvet is accelerating the advancement of Phase 3 features: AI-driven automatic trading and yield optimization strategies. The platform has collaborated with multiple derivatives protocols and lending platforms to develop cross-chain Delta-Neutral strategies and asset custody modules.

Recently, the $VELVET token has been launched on multiple DEXs and has initiated early incentive airdrops, attracting well-known institutions such as Binance Labs and Selini Capital to participate in early investments, further enhancing its credibility and growth expectations.

Conclusion: Who is Velvet suitable for?

• Newbies or DeFi users looking to discover potential opportunities using AI
• crypto traders seeking a more convenient trading experience
• KOLs and DAOs need tools to create their own on-chain investment portfolios.
• A fund manager who hopes to provide Decentralized Finance investment services to clients through white label applications.

Velvet is gradually turning the future vision of “AI + DeFi” into reality, which is worth long-term attention.