Manual for V1 (July 2022)

🔨 Introduction

Velvet Capital is a DeFi protocol that helps people & institutions create tokenized index funds, portfolios & other financial products with additional yield.

The protocol provides all the necessary infrastructure for financial product development being integrated with AMMs, Lending protocols and other DeFi primitives to give users a diverse asset management toolkit.

This doc will help users understand the nuances of the V1 version, that is live on BNB Chain, being a first step of the iterative development towards a versatile multi-(& cross-)chain protocol.

🙋‍♂️ Roles

There are four types of users interacting with Velvet Capital:

Individual investors

Individuals can select a product and deposit/withdraw funds directly using a native web3 app. In the future, the most popular products will be listed on exchanges creating a secondary market.

Portfolio managers

The portfolio manager is anyone who creates a new product on the platform. Their job is to set the initial parameters to automate the product or maintain it manually. Currently, this function is in beta testing, and you will see first test portfolios on the platform deployed on the back-end, we will release it for the general public in the following months.

Portfolio creation: Managers can create new portfolios with a specified set of parameters
Rebalancing: Managers can rebalance the portfolio periodically (e.g., weekly/monthly), manually or according to specific thresholds or triggers. The gas fees associated with rebalancing have to be paid by portfolio managers.

Developers

<aside> 💡 The SDK to be developed

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Institutional clients

We offer cross-chain asset management capabilities for Asset Managers and Family Offices and help streamline financial product development providing access to the full spectrum of other DeFi solutions. Please refer to the architecture below to learn more about how it works.

Velvet.Capital also offers asset management infrastructure to other projects and DAOs, providing a simple platform to diversify their treasuries and increase capital efficiency.