DeFi offers a new way of handling investments where users maintain control of their funds. This approach has gained traction as a safer option compared to traditional centralized exchanges, which have seen trust erode due to several notable failures. However, the DeFi space is vast and complex, with thousands of protocols spread across numerous blockchain networks, posing a challenge for investors who wish to develop comprehensive investment strategies.

The Rise of DeFi Vaults

To address these challenges, innovations within DeFi are constantly emerging, aiming to make the process simpler and more efficient. One such innovation is the concept of a DeFi vault. A DeFi vault is essentially a smart contract that autonomously manages assets according to specific strategies to optimize returns. These strategies can include staking, providing liquidity, and other yield farming techniques. The goal is to automate the process of earning returns on digital assets, making it more accessible to a broader audience.

Velvet Capital's Solution

Velvet Capital has emerged as a platform designed to streamline the management of DeFi assets. It allows users, ranging from individual crypto enthusiasts to fintech projects, to easily set up and manage tokenized funds and other DeFi products. Initially launched on the BNB Chain, Velvet Capital has since expanded to include Arbitrum, a layer-2 solution for Ethereum, thereby encompassing a significant portion of the DeFi ecosystem.The platform functions as a DeFi operating system for asset management, providing a user-friendly interface for creating and managing DeFi vaults. Velvet Capital takes care of the technical complexities, allowing users to focus on their investment strategies.

Streamlining Trade Execution

Velvet Capital has also introduced an Intent-Based Trade Execution system, which optimizes trade routes to ensure users benefit from the best liquidity and capital efficiency. This system searches across various decentralized exchanges and market makers to find the most favorable trade conditions, including lower gas fees and better token prices.

Setting Up a Vault

Creating a vault on Velvet Capital is a straightforward process. Users can sign in, select the 'Create' option to start a new vault, and then input the necessary parameters such as the vault's name, deposit limits, and fee structure. They can then enable deposits in popular cryptocurrencies and add the tokens they wish to include in the vault. After the initial deposit, users can begin managing their DeFi portfolio with ease.

Velvet Capital for Businesses

Velvet Capital also caters to business clients, offering a simple entry point into DeFi for fintech projects and traditional asset managers. These institutions can either use the platform directly or opt for a white-label solution, which includes additional support such as the integration of custom assets.

User Experience and Expansion

The platform provides a seamless onboarding experience, compatible with a variety of Web3 wallets. The dashboard presents a marketplace of vaults, allowing users to sort and select based on total value locked (TVL), annual percentage yield (APY), or estimated returns. The process of creating a vault is as simple as completing an online form, and there's no deposit required to create one, encouraging users to experiment with the platform.

The Future of Velvet Capital

Velvet Capital's vision is to be a comprehensive platform for DeFi investors to manage their portfolios. With plans to build an omnichain infrastructure and continue integrating with new protocols, Velvet Capital aims to simplify the DeFi market for users, helping them to identify and capitalize on the best investment opportunities. Michael Hage, the vice president of business development and growth at Velvet Capital, emphasizes the platform's commitment to becoming a central hub for DeFi investors, streamlining their experience in this dynamic sector.