Velvet Capital launches Velvet Unicorn, a DeFi Hedge Fund AI Agent, to provide users with efficient, participatory and adaptable onchain portfolio management.
Price fluctuations that take weeks in traditional markets can happen in minutes in the decentralized finance (DeFi) space, and even short delays can turn profits into losses.
In a market where time equals money, individual investors struggle to compete with algorithmic trading systems that dominate 92% of traditional markets, executing trades with unmatched speed and precision.
Artificial intelligence is stepping in to bridge this gap. By analyzing data, spotting patterns and executing trades in real time, AI-powered agents help individuals reclaim the ground long held by institutional algorithms.
However, for AI to truly level the playing field, it must surpass institutional algorithms in efficiency and adaptability. The task is anything but simple, requiring meticulous design and innovation to ensure AI systems deliver meaningful results for individual investors.
AI agent against trade algorithms
Velvet Capital, a DeFi asset management platform, is challenging the dominance of trading algorithms with its innovative AI-driven project, Velvet Unicorn. The AI agent analyzes vast amounts of market data, learns from user contributions and executes trades autonomously, offering a participatory and adaptive approach to trading.
Velvet Unicorn goes beyond a trading bot by creating a new category Velvet Capital calls a “DeFi Hedge Fund AI Agent,” meaning It autonomously manages portfolios of digital assets and DeFi positions, employing real-time data analysis and predefined algorithms. By interacting on platforms like X and Telegram, the AI agent bridges the gap between institutional-level precision and individual investor needs.
As an early Christmas gift, we are laying out the initial vision of @VU_virtuals publicly & giving holders a chance to earn on their $VU holdings + an easy way to enter
— Velvet Capital (@Velvet_Capital) December 23, 2024
Currently the portfolio is at 35m $VU, and the first set of rewards will be at 50m $VU
Read the 🧵for more… pic.twitter.com/oGit6NjYP8
At the core of Velvet Capital’s AI strategy is its intent-based operating system for DeFi on Base, Ethereum and BNB Chain. The system simplifies trading by allowing users to spin up their own portfolios in a few clicks. Smart contracts and intent-based transaction routing allow users to achieve efficient execution across blockchain networks.
With Velvet Capital’s application programming interface (API), users can fully leverage the intent-based operating system. The API serves as powerful middleware, enabling users to automatically execute trades onchain and allowing other products to be built on the Velvet Tech Stack.
What truly sets Velvet Unicorn apart is its ability to plug in automatically to the portfolio management app, built on Velvet Capital’s advanced trade routing technology and be able to let others join. Users will be able to participate in public portfolios created by Velvet Unicorn, where you can let AI work for you and earn fees or help develop trading strategies.
Velvet enables users to manage their DeFi portfolios independently or delegate the task to others. Source: Velvet Capital
To complement its features, Velvet also introduces a hedge fund-like model. The platform mimics the structure of a hedge fund by introducing fees for entry, exit, management and performance. Native VU tokenholders are central to this ecosystem, playing a pivotal role in deciding how portfolio fees are allocated in the portfolios that Velvet Unicorn manages.
For those looking to get involved, the project is community-owned and provides ample opportunities for collaboration and contribution. Users who wish to contribute to the development of Velvet Unicorn or explore their talents in the DeFi space can join the Velvet Unicorn AI Chat on Telegram.
Contributions such as research reports, insights from key opinion leaders (KOLs), onchain metrics, and social sentiment help refine the AI, ensuring smarter and faster decision-making. Users directly support Velvet Unicorn’s evolution by contributing this data, enabling it to make more accurate and efficient trading decisions.
Expanding AI agent’s reach and impact
Velvet Capital has already achieved significant milestones, including training the model, collaborating with Agent Starter and the Virtuals Team and enabling the AI agent to post and interact on platforms like X.
The roadmap includes fine-tuning the model with more comprehensive data, enabling trading capabilities, completing a Telegram bot and launching staking for VU holders. The AI agent will also begin managing portfolios on Velvet Capital’s platform, fully demonstrating the capabilities of its intent-based operating system. Additionally, other AI agents will launch within Velvet Capital’s ecosystem.
By integrating AI agents into DeFi, Velvet Capital envisions a future of inclusive, transparent and user-centric financial systems. With tools like Velvet Unicorn, powered by the intent-based operating system, the next generation of onchain trading and portfolio management is on the horizon.
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