Investing · Model strategy
Digital Asset Growth Strategy
Long-term capital appreciation over a three-year-plus horizon. BTC-excluded: BTC is held or managed separately, if at all.
No performance shown. This page describes how the strategy is built and managed. It does not show, project or imply investment results.
Thesis
What the strategy holds, and why
The strategy allocates to a focused selection of networks, financial applications, infrastructure, and AI and compute projects from a defined research universe. Selection emphasizes adoption, economic relevance, valuation, and a credible connection between platform activity and token value. Protocol revenue alone does not establish token-holder value.
Yield is an implementation tool for selected holdings, used when pool economics support the investment case. It is not the objective. For any candidate the strategy may hold the token directly, place a portion in a DEX pool, rotate into another candidate, or hold a zero allocation.
Sleeves
Four strategic sleeves
| Sleeve | Target | Purpose |
|---|---|---|
| Networks | 50% | Core exposure to selected non-BTC networks. |
| DeFi / infrastructure | 25% | Financial applications and supporting infrastructure. |
| AI / compute | 10% | Selective participation in the AI and compute theme. |
| Stablecoin strategy | 15% | Deployment flexibility and rebalancing capital. |
Research universe
What we research
Inclusion in the research universe does not require an allocation. Names may be added to or removed from the universe over time. Categories are grouped here by the sleeve they are shown with.
Protocol Wealth, its principals or related persons may hold positions in assets in this research universe, which is a conflict of interest; see our Form ADV Part 2A, Item 11.
Networks
- L1 general purpose
- Ethereum, Solana, BNB Chain, Avalanche, NEAR, Monad
- L1 trading
- Hyperliquid, dYdX Chain
- L2 infrastructure
- Optimism
DeFi / infrastructure
- Trading and exchanges
- Lighter, Uniswap, Jupiter, GMX, Aster
- Liquidity and exchanges
- Curve, Aerodrome, Raydium
- Lending
- Aave, Morpho
- Stablecoin systems
- Sky, Ethena
- Yield markets
- Pendle
- Liquid staking and restaking
- Lido, ether.fi
- Oracles and interoperability
- Chainlink
AI / compute
- AI and compute
- Bittensor, Venice, Render, Morpheus, io.net, Aethir
Process
How it is managed
Discretionary selection and rotation
Holdings may be started, increased, reduced, replaced or exited at the manager's discretion, consistent with the client's objectives and mandate. Category membership does not require ownership. A newly launched pool with high advertised rewards does not by itself justify a token allocation.
Quarterly review and a relative drift band
Positions are reviewed quarterly. A position is rebalanced when it is more than 20% above or below its target weight, measured relative to the target, not in percentage points.
Illustrative
A 5% target has a 4%–6% band. At a weight from 4% to 6%, the result is "Inside band — no trade". Below 4% or above 6%, the result is "Outside band — rebalance at review".
Execution is subject to discretion, liquidity and tax considerations. Event-driven adjustments may be made between reviews. Pool holdings count toward token weights. Maintaining a pool's range is separate from strategic rebalancing.
DEX implementation
A portion of the portfolio may be placed in DEX pools, funded from existing targets.
- Each pool must have at least $500,000 of pool-level total value locked (TVL) at deployment.
- Trading-fee income is distinguished from incentive rewards.
- Only universe assets, or approved representations of them, are used.
- If a pool fails the threshold or its economics are unattractive, the allocation stays in direct holdings.
Pool deployment, rebalancing, swaps and bridging incur network (gas) fees, swap or protocol fees and slippage, and staking may involve validator or protocol fees and unbonding periods; these costs reduce results and are in addition to the advisory fee. The advisory fee is set out on our pricing page.
Concentrated liquidity
A concentrated liquidity position provides liquidity only within a chosen price range. While the price is inside the range the position is "In range — earning fees". When the price moves outside it, the position is "Out of range — not earning fees" until the price returns or the range is adjusted.
LP results may trail simply holding the tokens (impermanent loss). Concentrated positions may need range adjustments, and out-of-range positions stop earning fees.
Staking
Eligible assets may be staked through supported arrangements. Staking involves validator or protocol fees and unbonding periods.
Risks
Principal risks
- Price volatility and drawdowns
- Digital asset prices can move sharply and fall substantially, for long periods, including to zero.
- Liquidity
- Some tokens and pools trade thinly. Selling or exiting a position can take time or move the price.
- Smart-contract and protocol risk
- Code defects, exploits, oracle failures, governance changes or a protocol shutting down can cause loss.
- DEX pools and impermanent loss
- A pool position can end up worth less than holding the two tokens, and a concentrated position earns no trading fees while the price is outside its range.
- Staking
- Staked assets can be subject to slashing, validator or protocol fees, and unbonding periods during which they cannot be sold.
- Stablecoins
- A stablecoin can lose its peg. Each one depends on its issuer, its reserves or mechanism, and the rules it operates under.
- Wrapped assets and bridges
- A wrapped token depends on the bridge or issuer that backs it. A bridge exploit, an issuer failure or a halt in redemptions can leave it worth less than the native asset, or nothing.
- Custody and keys
- Loss or compromise of keys, wallet policy errors, or a failure at a custodian or wallet provider can cause loss.
- Regulatory and tax uncertainty
- Laws, regulations and tax treatment of digital assets are unsettled and can change, including in ways that affect particular tokens or activities.
- Concentration
- The strategy holds a focused selection of digital assets in one asset class, so its holdings tend to move together.
- Model discretion
- Selection, rotation and rebalancing are discretionary. Judgments can be wrong, and execution may differ from the targets described here.
- Transaction and protocol costs
- Pool deployment, rebalancing, swaps and bridging incur network (gas) fees, swap or protocol fees and slippage, and staking may involve validator or protocol fees and unbonding periods; these costs reduce results and are in addition to the advisory fee. The advisory fee is set out on our pricing page.
Custody
How assets are held
Protocol Wealth is not a qualified custodian. It is deemed to have custody because it is authorized to deduct its advisory fees from many client accounts. Turnkey and Fordefi are wallet infrastructure, not qualified custodians. In a Fordefi wallet, Fordefi holds one key shard and Protocol Wealth holds one; the client holds the ultimate backup.
Some assets, for example Bittensor (TAO), may be held through a wrapped representation where native custody is not supported. Wrapped assets carry bridge and issuer risk.
See custody and control and qualified custody.
Fees
Fees are set out on our pricing page.
Last updated: October 8, 2026. Protocol Wealth, LLC is an SEC-registered investment adviser (CRD #335298). See ourForm ADVand disclosuresfor authoritative regulatory materials. Registration does not imply a particular level of skill or training; advisory services are provided only under a signed advisory agreement.
This page describes an investment strategy. It does not show or imply performance and is not an offer or a recommendation to buy any asset.