What is Velvet (VELVET)?

Deep Dive

1. AI-Driven DeFi Tooling

Velvet’s core innovation is its AI framework, which powers tools like the Velvet Unicorn co-pilot. This system analyzes on-chain data, social sentiment, and market trends to generate insights and execute strategies using natural language commands. For example, users can request “rebalance my ETH portfolio to 60% staking yield and 40% stablecoins” directly via chat (Velvet Docs).

2. Cross-Chain Infrastructure

The protocol supports multi-chain strategies, allowing vault managers to deploy capital across BNB Chain, Base, Ethereum, and Solana. Each vault operates via smart contracts with customizable permissions (e.g., whitelisted users, restricted assets) and integrates with DEXs, lending protocols, and OTC venues for optimal execution (Velvet App).

3. Tokenomics & Governance

VELVET tokens are staked as veVELVET (vote-escrowed) to unlock governance rights, fee discounts, and revenue-sharing. Stakers earn yields from platform fees and partner airdrops, incentivizing long-term participation. The token also powers a referral system and ecosystem growth initiatives like the July 2025 airdrop targeting early users (Airdrop Details).

Conclusion

Velvet positions itself as a unified interface for AI-enhanced DeFi, combining cross-chain flexibility with non-custodial security. Its success hinges on adoption by crypto funds and retail users seeking automated strategies. How will its AI adapt to rapidly shifting market conditions as DeFi matures?