London, 9 July 2025 – Velvet Capital, a next-generation DeFAI trading and portfolio management platform, has secured 3.7 million US dollars in funding to accelerate the development of its decentralised financial operating system. The capital raise also supports the launch of Velvet’s native governance and utility token, VELVET, aimed at enhancing the user experience across funds, DAOs, and individual traders.
The funding round saw participation from notable investors including YZi Labs, Blockchain Founders Fund, FunFair Ventures, Selini Capital, Mucker Capital, PAKA, and LucidBlue. Other contributors included Mindfulness Capital, SkyVision Capital, Gate Labs, Poolz Ventures, NexGen, Accelerator, Gains Associates, Rarestone, Echo, DWF Ventures, and several strategic backers.
Simplifying DeFi Portfolio Management
Velvet Capital aims to streamline the traditionally complex processes associated with decentralised finance. Its platform provides an all-in-one infrastructure enabling users to deploy, automate, and scale on-chain investment strategies without rebuilding the backend. Aly Madhavji, Managing Partner at Blockchain Founders Fund, said Velvet is “taking the complexity out of DeFi portfolio creation” by allowing teams to focus on strategy rather than infrastructure.
A Comprehensive DeFAI Ecosystem
At the heart of Velvet’s offering is a self-improving, multi-agent artificial intelligence operating system. This system is designed specifically for DeFi users, allowing them to perform technical analysis, receive price predictions, and execute trades using natural language commands.
The Velvet trading terminal offers access to trending tokens, high-volume assets, top gainers, and yield-generating DeFi pools. Users can research and trade directly from their wallets. The platform also supports the creation of personal or community-based vaults, which can be restricted to whitelisted users or open to the public.
Additionally, developers and businesses can utilise Velvet’s APIs to create branded applications under their own domains, maintaining direct relationships with their clients.
Adoption and Endorsement by Industry Players
Jake Seltzer, Managing Director at Quantix Capital, highlighted the platform’s robustness, noting that his firm uses Velvet’s vault infrastructure to manage both private investments and native tokens on Ethereum. “Deposits, withdrawals, and swaps are seamless, and the contracts are rock-solid,” he stated.
Michael O’Connor, Partner at FunFair Ventures, echoed this sentiment, emphasising Velvet’s commitment to security and user experience. “FunFair shares Velvet Capital’s belief that the future of asset management will be trustless, transparent, and on-chain,” he said.
Token Utility and Incentives
VELVET, the native token of the ecosystem, plays a central role in user engagement and governance. When staked as veVELVET (vote-escrowed VELVET), it unlocks the full utility of the platform. Users can lock their tokens for up to four years, with longer locks yielding more veVELVET. This mechanism encourages ongoing participation and platform loyalty.
Stakers receive a portion of platform revenue through real yield mechanisms, additional token emissions based on usage, tiered trading fee discounts, and eligibility for exclusive partner airdrops. They also gain governance rights to influence DAO decisions, integrations, and platform fee structures.
Public Listing and Future Roadmap
The upcoming public listing of VELVET will mark the first opportunity for general users to buy into the ecosystem. Tokens will be available through both centralised exchanges and directly from the Velvet App. Users who stake their tokens will also be eligible for enhanced rewards and benefits.
Velvet Capital’s mission is to build a vertically integrated DeFAI stack that provides institutional-grade tools and accessibility for everyone. With a live app, plug-and-play APIs, and an intelligent DeFi operating system, Velvet is positioning itself as a foundational layer for the future of on-chain asset management.
About Velvet Capital
Velvet Capital is a DeFAI trading and portfolio management ecosystem powered by intents. It offers a comprehensive stack of tools and services designed to simplify and automate digital asset strategies, enabling a seamless experience for both individuals and institutions.
