Newest DeFi Investing Products 👀
Greetings frens!As the new kids on the block its important we continue to introduce ourselves to you all. We’re here because we’re passionate about DeFi and want to make the world a better place by helping the next billion crypto users attain financial independence! Our cross-chain DeFi asset management protocol is going to revolutionize DeFi by making it simpler, sleeker and safer than ever before! Anyone can invest like a pro, with Velvet.Capital!
But don’t take our word for it! Binance Labs just selected us for investment from their Most Valuable Builder Program! We were 1 of 7 of over 700 applicants to be selected. The future is Velvet!
Our ProductsIn our last post we showed you how to best set up your Velvet.Capital portfolio here. Now we want to take a few minutes and explain the products offered on the V1.
Keep in mind our protocol is built with the long-term in mind. We will be constantly adding new products and building out functionality. Eventually you will be able to deploy any type of portfolio and strategy on-chain, with Velvet.Capital. We’re committed to offering unparralleled flexibility, customization and diversification.
Have an idea for a product you’d like offered? Tell us and we’ll build it :)
Blue Chip PortfolioThe Blue Chip Portfolio is an equally weighted portfolio of the Top 5 cryptocurrencies by market cap, excluding stablecoins. This portfolio is equally weighted and is rebalanced once every two weeks.
Holdings: Bitcoin 20%, Ethereum 20%, Binance 20%, Cardano 20%, XRP 20%
Why would I buy the Blue Chip Portfolio?The Blue Chip Portfolio is perfect for any investor looking to passively enter the market.
In equity terms, this portfolio is the equivalent of having an Index of Amazon, Apple, Microsoft, Google, and Saudi Aramco (the five largest companies by market cap in the world).
In the crypto market, the reason you would want an equally weighted index instead of one weighted by market cap is because of the over exposure to bitcoin. Bitcoin makes up about 40% of the total cryptocurrency market. Therefore an index that is weighted by market caps would have an oversized allocation of bitcoin.
Holdings:Bitcoin: BTC (20%)
The first cryptocurrency ever created with a market cap of $372 Billion. It’s a Proof of Work currency with a 21 Million total supply (about 2 million left to mine) and goes through a halving of mining rewards of new tokens every 4 years. So far, bitcoin jumps in price have all been around the halving (2012/13, 2016/17, and 2020/21).
Bitcoin is still the most widely known Cryptocurrency and most people who buy crypto tend to start with bitcoin.
Ethereum: ETH (20%)
Second largest Cryptocurrency with a market cap of $160 Billion. ETH is the cryptocurrency that powers the Ethereum network, a open source decentralized computing platform with smart contract functionality (why you can make dApps, DeFi Protocols, and NFT’s). ETH recently underwent “the merge” in September to become a Proof of Stake (PoS) Blockchain.
Binance: BNB (20%)
BNB is the exchange token of the Binance Crypto Exchange. Originally it was launched as an ERC-20 asset on the Ethereum Blockchain, but has now moved to the Binance Smart Chain (or BNB Chain). The BNB tokens gives owners discounted trading fees, can be used for payments, and investing in new ICO’s on the BNB Chain.
Cardano: ADA (20%)
ADA is the cryptocurrency powering the Cardano blockchain, an open source PoS Blockchain. ADA’s current market cap is $14 Billion. Cardano was founded by ETH co-founder Charles Hoskinson and is a competitor. Cardano focuses on slow development and scientific papers, often making investors unhappy with the slowness of the blockchains development.
Ripple: XRP (20%)
Ripple is a ‘Money Transfer Network’, and XRP is their native Cryptocurrency and currently has a market cap of $23 Billion. Ripple XRP is an open source and decentralized blockchain aimed at reducing friction in the financial system with fast transaction speeds and low costs. The Ripple XRP Blockchain also is developing smart contract functionality to compete more with Ethereum.
Top 10 PortfolioOur Top 10 Portfolio is a similar idea to the Blue Chip Portfolio, however instead of the Top 5 at a 20% weight, it gives you a 10% weighting to each of the Top 10 cryptocurrencies by market cap, excluding stablecoins. This portfolio is equally weighted and rebalanced once every two weeks.
Holdings: BTC (10%), ETH (10%), BNB (10%), XRP (10%), ADA (10%), DOT (10%), MATIC (10%), TRX (10%), AVAX (10%), UNI (10%)
This portfolio provides investors with higher upside than the Blue Chip given the higher volatility in lower cap assets than large caps like bitcoin and Ethereum, but still gives you allocation in the big projects.
With the Top 10 Portfolio you will not receive the additional yield that you would in the Yield By Venus Portfolio.
Holdings:Polkadot: DOT (10%)
DOT is the native asset to the Polkadot network is an open source protocol that currently has a market cap of $7 Billion. Polkadot facilitates cross-chain transfers of data and assets. Polkadot is aiming to bring us into a multi-chain world by processing transactions on a few different blockchains.
Polkadot allows developers to launch chains and applications leveraging a shared security model, without needing to worry about attracting enough miners/validators to secure their own chains. Additionally, Polkadot’s parachains can use bridges to connect with external networks like Bitcoin and Ethereum.
Tron: TRX (10%)
TRX is the native asset of Tron, a decentralized, open source blockchain with smart contract functionality. It’s a Proof of Stake blockchain focused on the development of dApps due to their high transaction throughput and low transaction fees. TRX has a market cap of $5.5 Billion.
Polygon: MATIC (10%)
Polygon is a Layer 2 Ethereum Scaling Solution that allows developers to create dApps with low transaction costs and solves the high gas fee problem on the Ethereum Blockchain. MATIC can be staked to earn additional yield and secure the Polygon Network. The current market cap of MATIC is $6.7 Billion.
Avalanche: AVAX (10%)
Avalanche is an open source layer 1 blockchain competitor of Ethereum focused on transaction speed and scalability. The Avalanche blockchain can process about 4,500 transactions per second, making it one of the fastest blockchains. AVAX is the native cryptocurrency of the Avalanche Blockchain. AVAX’s current market cap is $5 Billion.
Uniswap: UNI (10%)
Uniswap is a DEX (Decentralized Exchange) that operates on the Ethereum Blockchain. UNI is the governance token of Uniswap and is used to vote on all protocol changes. The UNI token itself does not give you the right to any profits. Uniswap is the largest DEX by trading volume and has a market cap of $4.9 Billion.
Yield By Venus PortfolioThis portfolio is created for those looking to earn additional yield on the tokens in their portfolio. This portfolio is constructed of 10 cryptocurrencies that are equally weighted and rebalanced once every two weeks. This portfolio earns additional yield via lending into the Venus Protocol.
Holdings: BTC (10%), ETH (10%), BNB (10%), XRP (10%), ADA (10%), DOT (10%), TRX (10%), CAKE (10%), MATIC (10%), LTC (10%)
Venus is the first yield farming partner of Velvet.Capital. Our Venus integration will essentially allow Velvet.Capital to lend tokens into the Venus Protocol while the assets are being held in the portfolio/index to earn additional yield. Then when the user withdraws from the portfolio the tokens will be automatically redeemed from the Venus protocol and the user will get the additional interest (which will already be displayed in the portfolio balance). The user will get back the tokens put in plus some additional interest from the protocol!
How Yield is Created:Though lending, providing liquidity, and staking certain crypto assets can earn additional yield on top of their normal price appreciation.
DeFi yield tokens are usually more difficult to analyze for new crypto investors, as the risk is heightened many times with the promise of more returns.
Many of these protocols tend to be risky investments, so we partnered with a premiere protocol like Venus to create our yield farming portfolio, to give you the rewards of DeFi yield farming with lowered risk that comes with such an established protocol.
To read more about yield farming, check out our article “Generating Passive Income on your Crypto Portfolio with Yield Farming”.
Holdings:To get a brief description of BTC, ETH, BNB, XRP, and ADA look at the holdings of the Blue Chip Portfolio.
To get descriptions for DOT, TRX, and MATIC look at the holdings of the Top 10 Portfolio.
PancakeSwap: CAKE (10%)
PancakeSwap is the biggest DEX (Decentralized Exchange) on the BNB Chain. CAKE is the Pancake Swaps native Cryptocurrency asset and allows users to trade BEP20 Tokens, provide liquidity to earn transaction rewards, and staking to earn more CAKE tokens or tokens of other Binance projects, CAKE currently has a market cap of $646 Million.
Litecoin: LTC (10%)
Litecoin originated from a fork in bitcoin’s code in 2011 and is known as the second oldest cryptocurrency. LTC is the native asset to the Litecoin blockchain. LTC was made to correct bitcoin’s shortcomings of high transaction fees and lengthy transaction times. The idea was that LTC would be for Litecoins current market cap of $3.7 Billion.
Start Investing Now!Early adopters and supporters will be rewarded! Token launch and NFT launch coming soon!
To get started go to https://velvet.capital/ and click the “Launch App” button on the home screen. This should redirect you to https://app.velvet.capital/.
Full tutorial here: https://medium.com/@velvetcapital/defi-asset-management-getting-started-with-velvet-capital-7bc24697e687
Join the Velvet Fam!Don’t forget to follow us on Twitter, LinkedIn and join us on Discord &Telegram for more updates! We want to hear from you, don’t be shy.
Let’s build together!
Until next time,