Velvet Capital, a DeFi asset management protocol, has successfully raised $3.7 million in a recent funding round. The financing saw participation from notable investors including YZi Labs, Blockchain Founders Fund, and FunFair Ventures, among others. This capital injection aims to bolster Velvet's mission to streamline portfolio management and trading for funds, DAOs, and individual traders. The funding will also support the launch of Velvet's new governance and utility token, designed to enhance user engagement and platform functionality. The investment underscores growing confidence in Velvet's ability to innovate within the DeFi space.