Leigh Drogen, founder of StarKiller Capital, brings his expertise in crypto investing strategies, focusing on momentum and market dynamics. He discusses the evolution of cryptocurrency, comparing it to the tech transitions from Web1 to Web2. Drogen highlights the shifting role of Bitcoin and Ethereum, emphasizing the importance of systematic strategies for navigating volatility. With co-host Kai Wu, they delve into market-neutral DeFi approaches and the changing behavior of venture capitalists in the crypto landscape.
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insights INSIGHT
Infrastructure Enables App Wave
Crypto recently reached the speed, cost, and scale thresholds needed for real consumer apps to work on-chain.
That infrastructure shift moves focus from protocols to application-level opportunities.
insights INSIGHT
Fat App Over Fat Protocol
The market is shifting from a "fat protocol" to a "fat app" era where apps capture more value than base chains.
Bitcoin remains a durable digital-gold application while networks like Ethereum may capture commerce value if on-chain activity scales.
volunteer_activism ADVICE
Survive And Advance
Adopt a "survive and advance" approach: protect capital through big drawdowns to compound over cycles.
Use trend-following to limit drawdowns so you can recover and participate in future upside.
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In this episode, we sit down with Leigh Drogen of StarKiller Capital, alongside guest co-host Kai Wu, for a deep dive into crypto investing strategies, momentum in digital assets, and market-neutral DeFi yield opportunities. Leigh shares his perspective on where we are in the crypto evolution, the parallels with past technology cycles, and how to survive and advance in one of the most volatile asset classes in the world. From time-series and cross-sectional momentum to the economics of yield farming, this is a comprehensive look at building systematic strategies in digital assets.
Topics Covered:
The parallels between Web1 → Web2 and today’s crypto transition
Why the “fat protocol” thesis is giving way to the “fat app” era
The role of Bitcoin vs. Ethereum in the next stage of crypto adoption
The “survive and advance” investing philosophy
Time-series momentum and cross-sectional momentum in crypto
How VC behavior is changing momentum dynamics
Sector-level momentum and narrowing lookback periods
StarKiller’s approach to asset selection and quality screens
Building a market-neutral DeFi yield strategy
Bootstrapping network effects and early liquidity provisioning
Diligence, counterparty risk, and managing protocol risk
The competitive landscape and where the biggest edges remain in crypto
Timestamps: 00:00 – Crypto’s infrastructure milestones and evolution 02:53 – The “fat protocol” vs. “fat app” thesis 08:09 – Bitcoin’s role vs. Ethereum’s potential 14:20 – “Survive and advance” and limiting drawdowns 19:20 – Time-series vs. cross-sectional momentum 23:00 – VC selling behavior and regime change in momentum 31:47 – Sector-level momentum trends 36:13 – Shorter lookback periods and market speed 39:56 – StarKiller’s investable universe and filtering process 48:00 – Designing a market-neutral DeFi yield strategy 52:56 – Rewards farming and bootstrapping network effects 58:00 – Market-making vaults and APR opportunities 01:00:10 – Managing counterparty and protocol risk 01:04:02 – Has crypto alpha become more competitive? 01:07:41 – One lesson for the average investor
Excess Returns