Velvet Worms: Phylum Onychophora

The phylum Onychophora (meaning "claw bearers") have species known as velvet worms. They are most common in the Southern Hemisphere, particularly in damp forests.  They are described as worms with legs and are likely close relatives to the Arthropods and Tardigrades.  

Velvet worms feed on smaller animals and insects by squirting a sticky slime. 

They have unusual mating behaviors and bear live young.