Integrating Universal Assets: Expanding Liquidity & Asset Universe on the Velvet Capital Base App
Trade BTC, SOL, SUI, SEI, NEAR, DOGE, and APT on the Velvet Capital Base App through Universal Assets
Velvet Capital's integration with Universal Assets is set to revolutionize trading within our platform, offering users a streamlined experience for managing assets on Base. This collaboration expands the accessibility of crypto tokens, enabling users to benefit from Universal Assets' advanced token-wrapping technology and Velvet Capital’s robust DeFi infrastructure.
Overview of Universal Assets
The Universal Assets theory is based on 3 factors:
1. Too many assets are not available onchain.
2. For those that are, liquidity will continue to fragment across multiple L1s and L2s.
3. End users shouldn't have to care about any of that.
With their goal synergizing with Velvet Capital’s to streamline portfolio management, this integration was a no brainer!
Universal Assets aims to redefine multi-chain liquidity by creating "uAssets," tokenized representations of assets that can operate seamlessly across different blockchain networks. Traditional cross-chain solutions rely heavily on bridging and liquidity pools, which can introduce fragmentation and inefficiencies. In contrast, Universal Assets leverages a system where trusted custodians secure assets on their native chain, while authorized Merchants can mint or burn uAssets on the target blockchain. This design removes the need for constant asset locking, allowing for more efficient cross-chain transfers.
With Universal Assets, users gain access to cross-chain liquidity without the hassle of complex bridges, creating a more cohesive DeFi ecosystem where users can seamlessly trade assets across various chains. This innovation enables a more flexible, interoperable blockchain environment, empowering traders and investors to maximize the potential of their assets across ecosystems.
How Universal Assets Wraps Tokens on Base
Universal Assets’ wrapping mechanism on Base utilizes a "lock-and-mint" model combined with a custodian and merchant structure. Here's how it works:
Custodians hold assets on the original blockchain, ensuring they are secure and available for representation on Base. These custodians play a critical role, enabling Universal Assets to avoid the typical need for multiple bridges or liquidity providers.
Merchants are authorized by Universal Assets to mint uAssets on Base once the equivalent amount of the original asset is securely held by a custodian. This permissioned system prevents the need for continuously locking assets on different chains, simplifying the process and reducing risks associated with complex bridging solutions.
Trading Efficiency: By using uAssets, users can access their preferred assets across chains without relying on separate liquidity pools, which streamlines the experience for traders and investors alike.
This unique setup allows Universal Assets to deliver on its promise of efficient, interoperable asset movement across the Base network, giving Velvet Capital users a robust and secure way to trade across chains with minimal friction.
How to Trade Universal Assets on Velvet Capital
To date, Velvet Capital has integrated the 7 assets that Universal has deployed via Aerodrome pools:
uBTC
uSOL
uDOGE
uSUI
uNEAR
uSEI
uAPT
To trade or add these 6 Universal Assets in your portfolio or through the trade module is simple. To find the assets click “All Protocols” and then select “Universal”.
After selecting “Universal” you will be able to view and select the asset you wish to trade.
Universal Assets Portfolio on Velvet Capital
The Universal Assets may also be added to your public portfolio on the Base App. Here is an example of a portfolio manager on the marketplace who has already implemented uSOL into their strategy.
Check out the BTC ETH SOL Portfolio
This integration represents a powerful step forward in Velvet Capital's mission to deliver efficient, cross-chain asset management. By combining Velvet Capital’s DeFi expertise with Universal Assets' groundbreaking technology, users will gain access to a new realm of trading possibilities, enhancing their experience and providing new avenues for portfolio growth.