One of my favorite cakes in red velvet cake which most people make using only vegetable oil but I have come across some recipes that use half butter and half vegetable oil or all butter.  I have never used butter in a red velvet cake but I have thought about it but I am scared that the butter will cause the cake to be dry. I have never heard of anyone using all oil in a cake and it being dry  so I was wondering how you can use butter in a cake and keep the cake from being dry.

My red velvet recipe uses only butter. Butter doesn't make a cake dry, a badly balanced recipe or overbaking makes a cake dry. If your recipe is good and your technique is right the cake will be fine.

I've had some luck by lowering the oven temperature down to 325 degrees on the butter cakes.

(so glad that I read CC.com)