$0 USD

APRIL 2024




"Intent Operating System for Seamless DeFi"


"We expect ~$8-19T in assets (both web3-native & real-world) to be on-chain in the near future. There’s a strong need to use on-chain financial rails to manage these assets, and many professional investors & traders are already exploring DeFi." "While DeFi infrastructure is maturing across the board, it still lacks the comprehensive, institutional-grade tooling that is suitable for professional investors & traders."


"Velvet.Capital is an Intent Operating System for DeFi that helps manage your onchain portfolio or launch new DeFi products." "Bringing together the latest research & development in intent-based architecture & account abstraction, Velvet.Capital is working with traders & portfolio managers to remove barriers for DeFi adoption."


"Velvet’s intent-based architecture and integrations with major aggregators, solvers & market makers enable smart routing across on-chain sources (AMMs and DEXes) as well as other OTC-style venues to ensure the best execution & MEV protection."


"One-click allocation into DeFi pools to earn additional yield from lending, staking, or providing liquidity batches all necessary actions (e.g., trading, token approval, staking, minting) together so that you can seamlessly go from any token/pool to any token/pool (or rebalance the whole portfolio in one click)."


"An API layer with end-point structure similar to well-known CEXes helps seamlessly use existing trading algorithms or create new ones automating on-chain interactions. "


"Every vault is deployed on-chain with its own series of smart contracts and access controls: users can deposit to / withdraw from the vault by minting/burning LP tokens, and vault managers can execute their strategies without having custody over the underlying assets. While every vault is non-custodial by default, the protocol architecture also allows to set up multi-sig vaults (and MPCs in the future versions) for large clients separating custody from asset management functionality (reach out to the team to learn more)."


"Functionality to whitelist wallets able to access the vault (e.g., allow only clients who went through KYC/KYB), restrict transfers and limit permitted assets and protocols. There’s a separate admin role which can be used to manage these processes without access to trading."


"Velvet is the first DeFi protocol aimed to provide omni-chain asset management capabilities, so that vault managers are not constrained within a single chain and can execute complex strategies across multiple ecosystems (will be introduced in future versions)."


"Velvet is partnering with on-chain derivative protocols & borrowing functionality to broaden the asset management toolkit on Velvet and allow to run delta-neutral strategies (coming in the future versions)."


"Velvet's flexible architecture & permissioning capabilities make the protocol suitable for real-world assets tokenization, and the first RWA product on Velvet is currently in private beta (reach out to the team to join the pilot)."


"All the contracts are open for external code auditors / white hats to verify the code. We're constantly running bug bounties and conducting security audits. The latest audits perfomed by Peckshield and Shellboxes"


"Users reported abnormal activity on the trading platform of the DeFi asset management protocol Velvet Capital on April 23rd. When attempting to connect to the frontend, users were prompted to approve their wallet's access permissions for the protocol."


"ATTN: Some of the users experienced an issue while connecting to the app today, please don't interact with Velvet front-end, we're closing it for maintenance & investigating the issue."


"No known users were impacted, if you interacted with Velvet on April 23 after 12:30am UTC and believe you were impacted - please create a ticket on Discord.


The team promptly identified the issue and, together with top security researchers, investigated the malicious activity & the issue is being fixed.


The smart contracts are not affected and the issue occurred on the front-end, therefore if you did not interact and sign the malicious transaction your funds are safe." "No funds lost - thanks to those who alerted and our security team + others who assisted"


"The app is back up & running, and users can once again manage their vaults on Velvet Capital"

Velvet Capital offers infrastructure to help with adoption of DeFi infrastructure, with a suite of tools specifically targeted against several key pain points which they identified from surveying professional investors and traders. On April 22nd, 2024, it was reported that their front-end had been attacked and users who attempted to use their product were being prompted to approve a malicious smart contract. Fortunately, no funds were actually lost, and the application was brought back online quickly. Details about the vulnerabilities in the front-end do not appear to have ever been disclosed, however the user interface was also upgraded within a couple of weeks of the incident.

Sources And Further Reading

 For questions or enquiries, email info@quadrigainitiative.com.

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