Velvet Capital Secures $3.7M in New Funding Round

Velvet Capital raised $3.7 million in a recent funding round with participation from YZi Labs, formerly known as Binance Labs, to enhance its DeFi asset management capabilities.

This investment by prominent venture supporters underscores Velvet Capital’s mission to innovate in DeFi asset management through a focus on trustless and transparent ecosystems.

Velvet Capital, a DeFi asset management protocol, announced a successful $3.7 million funding round. Significant entities like DWF Ventures and YZi Labs backed the initiative. Founded in 2022, Velvet specializes in tokenized index funds and portfolios.

The funding will bolster the rollout of Velvet’s new DeFAI operating system. Investors anticipate enhanced trading and portfolio management, especially across cross-chain avenues, expanding from its stronghold on the Ethereum network.

The infusion of funds aims to strengthen market positioning, enabling ecosystem utility and the launch of the VELVET token. This involves vote-escrowed staking for governance and reduced trading fees, capitalizing on potential increased user engagement.

Such fundraises often result in increases in Total Value Locked (TVL) and platform activity, similar to past successful launches like Enzyme Finance and dHEDGE. Velvet’s approach includes adopting a governance token model, expected to draw substantial market interest.

Michael O’Connor of FunFair Ventures praised Velvet’s approach, aligning with sustainable financial structures. Future developments hinge on the deployment of yield-focused strategies and potential integration of other chains like BTC and major Layer 1 tokens.

The focus remains on monitoring Velvet’s token launch and evaluating market metrics following the funding announcement. Outcomes in the DeFi space will serve as indicators of Velvet’s growth trajectory in asset management.