VELVET Analysis: AI-Powered Decentralized Financial Operating System

VELVET: Redefining Crypto Asset Management with an AI Operating System

VELVET, launched in 2024, is an AI-driven decentralized financial operating system (DeFAI) designed to address the operational complexity and inefficiencies in traditional DeFi strategies. Its core innovation lies in the “Intent-Centric” design—users simply declare objectives (e.g., “swap ETH with minimum slippage” or “balance portfolio risk”), and system AI agents automatically determine the optimal execution path. On July 9, 2025, VELVET completed a $3.7 million funding round led by YZi Labs and Blockchain Founders Fund. The following day, the VELVET token generation event (TGE) was exclusively launched via Binance Alpha, marking a new phase for AI-powered on-chain asset management.

This Token Insights article explores how VELVET reconstructs the on-chain trading experience through AI agents and details its intent architecture and cross-chain asset management design.

Technical Architecture: Three-Tier Engine for Smart Trading

Intent Parsing Layer

Users issue commands via natural language, which the system converts into executable strategies using an NLP module. For instance, if the instruction is “allocate 30% to risk-averse assets,” the engine scans options like Matrixport’s gold token XAUm and stablecoins, and computes the optimal plan based on oracle prices and gas costs, reducing execution expenses by up to 40%.

Agent Execution Layer

A multi-agent system (MAS) is adopted, where each AI agent focuses on vertical use cases:

• Liquidation Agent: Monitors collateral ratios to prevent liquidations;

• Arbitrage Agent: Captures price differences between DEXs, with a historical annualized return of 25%;

• Rebalancing Agent: Dynamically adjusts allocations of ERC-20, NFT, and RWA assets.

Combining off-chain computation with on-chain zk-SNARK verification reduces complex strategy gas costs by 75% while ensuring tamper-proof execution. See JuCoin developer docs for decentralized AI system development guidance.

Omni-Chain Management Layer

VELVET aggregates liquidity across eight major chains including Ethereum, Solana, and Aptos to enable unified account management. Users can operate multi-chain assets from a single interface. A 0.1% cross-chain friction fee (fully burned) helps balance system load.

Tokenomics: Three-Tier Value Capture Model

The total supply of VELVET tokens is 1 billion, focused on ecosystem incentives and governance:

• 40% Ecosystem Incentives: Rewards for AI agent developers, liquidity providers, and strategy contributors;

• 20% Team and Advisors: 24-month lock-up, released quarterly;

• 15% Public Sale: Binance Alpha TGE launch (requires ≥200 Alpha Points);

• 15% Protocol Treasury: Strategic acquisitions and ecosystem fund;

• 10% Liquidity Reserve: Injected into DEXs like Uniswap V3.

Core Value Scenarios:

• Fee Discounts: Stake ≥1,000 VELVET for up to 60% trading fee reduction;

• Governance Voting: Decide agent commission rates, asset whitelists, and more;

• Agent Staking Collateral: AI agents must stake tokens to execute tasks—slashed for failures.

Deflationary Measures:

• 30% of protocol revenue is used for quarterly buyback and burn;

• Agent execution errors trigger collateral slashing;

• Cross-chain transfers incur a 0.1% burn tax.

Development Progress: Funding and Ecosystem Integration

Capital Validation of Business Model

$3.7 million raised on July 9, 2025 (led by YZi Labs) will be used to:

• Expand AI agents to 20 types;

• Integrate emerging chains like Sui and Berachain;

• Develop dynamic NFT agents (tradable strategy assets).

Binance Alpha Exclusive Launch

TGE details for July 10, 2025:

• Subscription window: UTC+8 16:00-18:00;

• Requirement: ≥200 Alpha Points (15 points consumed);

• Community reserve: 30 million tokens for future activities.

Key Partnerships to Deepen Use Cases

• Matrixport Integration: XAUm gold token offers volatility hedge;

• Chainlink CCIP Support: Ensures cross-chain transfer security and data integrity;

• Polygon CDK Support: Custom L2 chain processes 2,000+ complex transactions per second.

Outlook and Challenges: DeFAI Sector Breakthrough

Risks to Watch:

• Strategy Volatility: AI agent drawdown tested up to 12% in extreme markets;

• Regulatory Uncertainty: Legal responsibilities of autonomous agents remain undefined;

• Incumbent Competition: Traditional platforms like Aave Pro racing to adopt AI features.

Upcoming Catalysts:

• Institutional Adoption: Hedge fund adoption would validate the business model;

• RWA Expansion: Q3 plans to support tokenized real estate, government bonds, etc.;

• Agent Assetization: Dynamic NFT agents create a new market for trading strategies.

Revolutionizing Financial Infrastructure

VELVET is pioneering the “Intent Economy,” liberating users from complex operations while AI agents coordinate on-chain value flows. If over 50 institutions adopt VELVET by Q4 2025, it may become core infrastructure for Web3 asset management, leading DeFi into the DeFAI era.

The ultimate form of financial democratization is abstracted operation—VELVET’s intent architecture and multi-agent system are reshaping how value is transacted.