Velvet Capital has announced the successful completion of a $3.7 million funding round, with participation from significant investors including YZi Labs.
Funding and Future Plans
Velvet Capital, a DeFi asset management protocol, has successfully raised $3.7 million. The funding was backed by notable entities like DWF Ventures and YZi Labs. Founded in 2022, Velvet specializes in tokenized index funds and portfolios.
The funds will be used to launch Velvet's new DeFAI operating system. Investors are anticipating enhanced trading and portfolio management, particularly within cross-chain avenues to expand beyond Ethereum.
Market Positioning
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.
Looking Ahead
As the company continues to focus on its token launch and evaluates market metrics following the funding announcement, outcomes in the DeFi space will serve as key indicators of Velvet’s growth trajectory in asset management.
Overall interest in Velvet Capital continues to grow, especially given its focus on innovative asset management and advantages of cross-chain solutions.
