Outline
The DeFi world is wild. I've watched too many smart people lose their shirts chasing 1000% APY yields that turned out to be too good to be true. After years of seeing friends get rekt by protocol failures and market crashes, I started BOOST Capital to do things differently.
"This isn't another 'number go up' fund. We're here to build wealth systematically while actually sleeping at night."
The Real Problem with DeFi Investing
Let me be blunt: most DeFi investing is gambling dressed up as strategy.
I've seen it all. Friends who threw their life savings into protocols promising 500% yields, only to wake up to a 90% drawdown when the token mechanics collapsed. Smart traders who made millions in the bull market, then gave it all back (and more) because they had zero risk management.
The pattern is always the same - chase the hottest new protocol, ignore the fundamentals, size positions based on FOMO instead of risk, then panic sell when things go south. It's exhausting to watch.
Here's what usually goes wrong:
- People fall for unsustainable yields without understanding where the money actually comes from
- They put 50% of their portfolio into a single farm because "the community is really strong"
- They don't read the smart contracts or check if the team is anonymous
- When volatility hits, they have no plan except to hope
I started BOOST Capital because I was tired of watching this cycle repeat. There had to be a better way to capture DeFi's opportunities without the constant stress and massive drawdowns.
Section Summary
- Most DeFi investing is gambling dressed up as strategy
- Common mistakes: chasing unsustainable yields, poor position sizing, no risk management
- Pattern of FOMO buying and panic selling destroys wealth
- BOOST Capital started to offer a better, systematic approach
How We Actually Think About This
Our approach comes down to four simple rules that we never break:
Our Four Core Rules:
- Don't lose money first, make money second. I know it sounds obvious, but you'd be shocked how many people skip this step. We'd rather miss a 10x than lose 50% of our investors' money on a bad bet.
- Systems beat emotions every time. When Ethereum is pumping and every crypto Twitter account is posting rocket emojis, it's tempting to go all-in. When everything's crashing and people are calling for $10k Bitcoin, it's tempting to sell everything. We have rules for both scenarios, and we stick to them.
- Show your work. Every position we take is visible on-chain. You can literally watch our wallet and see exactly what we're doing in real-time. No hiding behind quarterly reports or vague language about "alternative strategies."
- We win when you win. Our fees are tied to performance, and we invest our own money alongside yours. When we make bad calls, we feel it too.
Section Summary
- Capital preservation comes before profit generation
- Systematic rules overcome emotional decision-making
- Complete transparency with on-chain verification
- Performance-based fees and aligned incentives
Finding Signal in the Noise
The DeFi space moves fast. New protocols launch every day, each one promising to revolutionize something. Most are noise.
We look at maybe 100 new projects every month. We invest in 3-5 per quarter. Here's how we separate the real opportunities from the marketing campaigns:
For Protocols:
We dig into the boring stuff. How many audits have they had, and by whom? Is their TVL actually sticky, or does it fluctuate wildly based on token incentives? Who's on the team, and have they built anything before? Is the governance actually decentralized, or is it controlled by a few whales?
For Tokens:
We care about where the yield actually comes from. Is it just printing new tokens (not sustainable), or are users paying real fees for real services (potentially sustainable)? What happens when the current incentives end? Are there actual reasons for people to hold this token long-term?
For Markets:
We watch what's actually happening on-chain versus what people are talking about on Twitter. Sometimes the best opportunities are in sectors everyone thinks are "dead" but are quietly building real adoption.
The key is staying disciplined. Just because something is popular doesn't make it a good investment. Just because something is unpopular doesn't make it a bad one.
Section Summary
- Review ~100 projects monthly, invest in only 3-5 per quarter
- Focus on fundamentals: audits, TVL stability, team background
- Analyze sustainable yield sources vs. token printing
- Monitor on-chain data over social media sentiment
Risk Management That Actually Works
Here's the thing about risk management - it's not sexy, but it's what separates professionals from gamblers.
Our Risk Management Framework:
- Position sizing changes with volatility. When markets are calm, we might put 8% of the portfolio into a single position. When things get choppy, that drops to 3-5%. When everything's going crazy, we go to cash and wait for better opportunities.
- Liquidity matters more than you think. We only invest in tokens you can actually sell. Sounds obvious, but you'd be surprised how many people get stuck in illiquid positions when they need to exit. We need at least $10M daily volume before we consider a position.
- Stop losses aren't just numbers on a screen. If our original thesis breaks - maybe the team leaves, or governance votes for something stupid, or the tokenomics change - we sell. Even if we're down money. Especially if we're down money.
- Hedging isn't just for traditionalists. When we're worried about downside, we buy puts. When we want to take profit but think there's more upside, we sell calls. We keep 15-25% in stablecoins for opportunities and protection.
The goal isn't to never lose money on individual positions. The goal is to never lose so much that it materially impacts our investors' long-term wealth building.
Section Summary
- Dynamic position sizing based on market volatility (3-8% per position)
- Minimum $10M daily volume requirement for liquidity
- Disciplined stop losses when thesis breaks
- 15-25% stablecoin allocation for hedging and opportunities
Why We Do Everything in Public
Most hedge funds operate like black boxes. You send them money, they send you quarterly reports with fancy charts, and you hope they know what they're doing.
We think that's backwards.
Every transaction we make is on-chain and public. You can see our exact positions, when we bought, when we sold, and how much we made or lost. You can verify our performance numbers independently. You can even copy our trades if you want (though please don't without understanding the risks).
This level of transparency keeps us honest. It's easy to take big risks with other people's money when no one's watching. It's harder when everyone can see exactly what you're doing.
We also share our thinking:
- Weekly updates on what we're seeing in markets
- Monthly deep dives into specific sectors or protocols
- Regular AMAs where investors can ask us anything
The crypto space has enough opacity and "trust me bro" energy. We're trying to do something different.
Section Summary
- All transactions visible on-chain in real-time
- Performance independently verifiable
- Weekly market updates and monthly deep dives
- Regular AMAs for direct investor engagement
From Idea to Position
When we spot something interesting, here's what actually happens:
Our Investment Process:
- Research phase: We start with on-chain data. Is TVL growing? Are people actually using this protocol, or is it just bots farming tokens? We read everything - the docs, the Discord, the governance proposals. We talk to the team if possible.
- Due diligence: We have a 47-point checklist that covers everything from smart contract audits to team backgrounds to competitive positioning. It's tedious, but it catches problems before they become losses.
- Position building: We rarely buy everything at once. Usually we'll start with a small position and add if our thesis plays out. This reduces timing risk and gives us flexibility.
- Ongoing monitoring: Markets change fast in crypto. A protocol that looked great last month might have new competition, or governance drama, or just changing user behavior. We check our positions daily and reassess monthly.
- Exit planning: Before we even enter a position, we know what would make us sell. Price targets, fundamental changes, time limits - whatever makes sense for that specific investment.
It's not glamorous, but it works.
Section Summary
- Research starts with on-chain data and community engagement
- 47-point due diligence checklist catches problems early
- Gradual position building reduces timing risk
- Daily monitoring with monthly reassessment
- Pre-defined exit criteria before entering positions
Where We Stand Today
The crypto fund space is finally growing up. When I started in this industry, most funds were basically guys with a Bloomberg terminal and a prayer. Now we're seeing real institutional infrastructure, proper custody solutions, and funds that can actually explain their edge.
Some recent examples that give me hope: Tephra Digital made 9% in July alone and they're up 23% this year. Galaxy Digital has built a real multi-strategy platform. Pantera's DeFi fund is up 28% this year by sticking to fundamentals.
Meanwhile, institutions are finally paying attention. We've seen $700 billion flow into crypto markets this year, with $30 billion going specifically into ETFs and ETPs. Pension funds and endowments are starting to allocate. Corporate treasuries are adding Bitcoin.
The infrastructure is getting better too:
- Proper custody from Coinbase and Fidelity
- Prime brokerage services that actually work
- Clearer regulations that let institutions sleep at night
This maturation is exactly what we've been waiting for. The casino phase is ending. The professional investment phase is beginning.
Section Summary
- Crypto fund space maturing with institutional infrastructure
- $700 billion flowed into crypto markets this year
- Major custody and prime brokerage solutions now available
- Casino phase ending, professional investment phase beginning
Our Track Record
Since we launched in July, we're up over 20% for 2025. While we don't obsess over short-term comparisons, what matters more is how we've managed risk during volatile periods.
Our approach has consistently generated positive returns while maintaining disciplined risk management. We focus on building sustainable wealth rather than chasing unsustainable performance spikes.
The biggest contributors have been our carefully selected protocol investments across the Ethereum ecosystem, Layer 2 solutions, and core DeFi infrastructure plays.
These aren't spectacular numbers, but they're consistent and sustainable. We're not trying to hit home runs every quarter. We're trying to compound wealth over time without taking unnecessary risks.
Section Summary
- Up over 20% for 2025 since July launch
- Consistent returns with disciplined risk management
- Focus on Ethereum, Layer 2, and DeFi infrastructure
- Prioritizing sustainable wealth compounding over home runs
What's Next
The DeFi space keeps evolving, and so do we.
Our expansion plans:
- Expanding into new sectors like GameFi and real-world asset tokenization
- Building better monitoring tools and risk models
- Adding AI-powered analytics to spot patterns we might miss manually
- Better reporting systems and enhanced compliance frameworks
- Streamlined onboarding for larger institutional allocations
The regulatory environment is getting clearer, which should bring even more institutional capital. We want to be ready.
Section Summary
- Expanding into GameFi and real-world asset tokenization
- Developing AI-powered analytics and monitoring tools
- Preparing for increased institutional adoption
- Enhanced compliance and reporting infrastructure
The Bottom Line
DeFi offers real opportunities to build wealth, but most people approach it wrong. They treat it like a casino instead of an asset class.
Our approach isn't revolutionary - it's just disciplined. We do research, manage risk, stay transparent, and align our interests with our investors. In a space full of speculation and hype, sometimes boring is exactly what you need.
If you're tired of the crypto rollercoaster and want to build wealth systematically, we'd love to have you along for the ride.
Section Summary
- DeFi should be treated as an asset class, not a casino
- Disciplined approach: research, risk management, transparency
- Boring strategies often outperform in volatile markets
- Systematic wealth building over crypto rollercoaster
Check out our live performance and invest here
Visit Our FundYou can see exactly what we're doing before you commit a dollar.
Disclaimer: Cryptocurrency investments carry substantial risk, including the potential for complete loss of capital. Past performance does not guarantee future results. The Boost Capital Fund is not suitable for all investors.