As the DeFi ecosystem continues to expand, users need to operate across multiple protocols, different blockchains, and complex liquidity environments. Traditional DeFi tools offer a wide range of financial functions, but they also come with a high barrier to entry and often require users to have strong on-chain operating experience.
Velvet aims to reduce this complexity through AI Agents and an automated execution framework, enabling users to complete tasks through natural language and intent expression that would otherwise require multiple manual steps.
What Is Velvet?
As a DeFAI, Decentralized Finance plus Artificial Intelligence, platform that combines artificial intelligence, AI, Intent-Based Execution, and on-chain asset management capabilities, Velvet is designed to help users complete on-chain trading, portfolio management, and asset allocation in a simpler way.
How Does Velvet Work?
Velvet’s core architecture is built on the Intent-Based Execution model.
Traditional DeFi trading usually requires users to specify the trading path and operational steps themselves. For example, a user needs to choose the trading pair, decide on the routing method, and confirm fees and slippage parameters.
Velvet takes a different approach. Users only need to express their final goal, such as “convert assets into a certain token” or “build a specific asset allocation portfolio,” and the system automatically searches for the optimal execution path.
The overall process mainly includes the following parts:
User Submits an Intent
Users enter their goal through the Velvet interface instead of manually designing a trading strategy.
AI Agent Interprets the Request
The AI module identifies the user’s goal and generates an executable on-chain operation plan.
Solver Finds the Optimal Path
The Solver network within the system analyzes different liquidity sources and searches for the best execution method.
Transaction Execution Is Completed Automatically
The transaction is executed through aggregators and smart routing systems, with the goal of reducing costs and slippage impact as much as possible.
This model allows users to complete on-chain operations without needing to understand the complex trading logic underneath.
What Is the Velvet Unicorn AI Framework?
Velvet Unicorn, VU, is the AI Agent framework within the Velvet ecosystem.
Velvet Unicorn is not designed simply to provide chatbot functions. Its goal is to build an intelligent agent system capable of executing real financial tasks.
The framework includes several Agents with different roles:
Research Agent
The Research Agent analyzes market data, on-chain activity, and asset information to provide reference points for later decisions.
Trading Agent
The Trading Agent executes trading strategies based on user intent and calls the relevant protocols to complete operations.
Execution Agent
The Execution Agent converts AI-generated decisions into actual on-chain transaction instructions.
Coordination Layer
The Coordination Layer manages information exchange and task allocation among multiple Agents.
This multi-agent architecture allows different AI modules to work together, improving execution efficiency and system scalability.
How Does Velvet Vault Enable On-Chain Asset Management?
Vault is an important part of Velvet’s asset management system.
Velvet Vault can be understood as an on-chain portfolio container that allows users to manage multiple digital assets in a non-custodial environment.
Unlike traditional funds, assets inside a Vault remain within the smart contract system, and users can view holdings and strategy configurations at any time.
Personal Vault
Personal Vault is designed for individual users and allows them to create dedicated asset portfolios.
Shared Vault
Shared Vault allows multiple users to participate in the same investment portfolio.
This model can create an effect similar to on-chain copy investing, allowing users to follow the allocation strategies of asset managers.
LP Token Mechanism
When users deposit assets into a Vault, they receive LP Tokens representing their shares.
LP Tokens reflect the user’s ownership proportion in the Vault and can be used to redeem the corresponding assets.
VELVET Token and the veVELVET Governance System
VELVET is the native token of the Velvet ecosystem.
The token supports multiple functions, including governance, incentives, and ecosystem value distribution.
To strengthen long-term participation, Velvet has introduced the veVELVET model.
What Is veVELVET?
Users receive veVELVET by locking VELVET tokens.
The longer the lock-up period, the higher the governance weight users usually receive.
Governance Functions
veVELVET holders can participate in protocol governance proposals and ecosystem decisions.
Revenue Sharing Mechanism
A portion of protocol revenue may be distributed to long-term participants through governance mechanisms, strengthening ecosystem incentives.
Long-Term Incentive Design
The veVELVET system is designed to encourage long-term participation rather than short-term speculation, supporting more stable ecosystem development.
Main Use Cases of Velvet
As AI and on-chain finance become increasingly integrated, Velvet’s application scope continues to expand.
AI-Driven Trading
AI Agents can assist with trade execution and strategy optimization.
Portfolio Management
Users can use Vaults to manage multi-asset portfolios.
Social Asset Management
Skilled managers can create public Vaults for other users to join.
Institutional-Grade DeFi Services
Velvet’s infrastructure can provide institutions with automated asset management solutions.
Multi-Chain Asset Management
The platform supports a unified asset management experience across cross-chain environments.
| Comparison Dimension |
Velvet |
Traditional DeFi Platforms |
| Interaction method |
Intent-driven |
Manual operation |
| AI support |
Supports AI Agents |
Usually not supported |
| Trade execution |
Automatic route optimization |
Chosen by the user |
| Asset management |
Integrated Vaults |
Multi-protocol combinations |
| User barrier |
Relatively lower |
Relatively higher |
| Automation level |
Higher |
Lower |
Velvet’s innovation lies in using AI as an intermediate layer between users and DeFi protocols. Through automation and intelligent execution, it lowers the barrier to using DeFi.
Challenges and Limitations Facing Velvet
Although DeFAI shows broad potential, it still faces several challenges.
The decision quality of AI Agents depends on data quality and model capability. In complex market conditions, automated systems may still produce execution deviations.
In addition, compatibility across multi-chain environments, security audits, and governance mechanism design will also affect the platform’s long-term development.
As the DeFAI industry gradually matures, these issues will remain important challenges that the entire sector needs to keep addressing.
Conclusion
Velvet is a DeFAI infrastructure platform that brings together AI Agents, Intent-Based Execution, and on-chain asset management capabilities. Through intent-driven trading, smart Vaults, and a multi-agent AI framework, Velvet aims to reduce the complexity of DeFi, enabling users to manage digital assets and execute on-chain operations in a simpler way. As artificial intelligence and blockchain technology continue to converge, DeFAI platforms like Velvet are helping push decentralized finance toward a more intelligent and automated future.
FAQs
What Are Velvet’s Core Features?
Velvet’s main features include intent-driven trading, an AI Agent execution framework, on-chain asset management Vaults, portfolio management, and a governance system.
Does Velvet Custody User Assets?
Velvet uses a non-custodial architecture. User assets are usually held in smart contract-controlled Vaults rather than being custodied by a centralized institution.
What Is the VELVET Token Used For?
VELVET is mainly used for protocol governance, ecosystem incentives, value distribution, and obtaining veVELVET governance rights.
What Is Intent-Based Execution?
Intent-Based Execution is a trading model in which users only need to express their goal rather than define a specific execution path. The system automatically finds the best solution and completes the operation.
How Is Velvet Vault Different from a Traditional Fund?
Velvet Vault runs on blockchain smart contracts and offers transparency, verifiability, and non-custodial features, while traditional funds usually rely on centralized institutions for asset management and operations.
