Velvet Capital has moved all of its protocol-owned liquidity to Aerodrome, the largest decentralized exchange on the Base network. The migration is designed to deepen trading liquidity and sharpen execution efficiency for Velvet’s users across the Base ecosystem.
What Velvet Capital is actually doing
Velvet Capital operates as a DeFi trading terminal that leans on AI-driven capabilities to support spot trading, perpetual contracts, and yield strategies.
Protocol-owned liquidity, or POL, is exactly what it sounds like. Instead of relying entirely on mercenary liquidity providers who chase the highest yield and bolt at the first sign of trouble, protocols hold and deploy their own liquidity.
By migrating that owned liquidity entirely to Aerodrome, Velvet is making a bet that concentrating its resources on a single dominant venue will produce better outcomes than spreading liquidity across multiple platforms. The VELVET/USDC pool is among the trading pairs now live on Aerodrome, giving the token a more robust trading environment on Base.
