Momentum is Everything | Leigh Drogen on Building Lasting Strategies in Crypto
Momentum is Everything | Leigh Drogen on Building Lasting Strategies in Crypto  
Podcast: Excess Returns
Published On: Tue Aug 19 2025
Description: 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 transitionWhy the “fat protocol” thesis is giving way to the “fat app” eraThe role of Bitcoin vs. Ethereum in the next stage of crypto adoptionThe “survive and advance” investing philosophyTime-series momentum and cross-sectional momentum in cryptoHow VC behavior is changing momentum dynamicsSector-level momentum and narrowing lookback periodsStarKiller’s approach to asset selection and quality screensBuilding a market-neutral DeFi yield strategyBootstrapping network effects and early liquidity provisioningDiligence, counterparty risk, and managing protocol riskThe competitive landscape and where the biggest edges remain in cryptoTimestamps:00:00 – Crypto’s infrastructure milestones and evolution02:53 – The “fat protocol” vs. “fat app” thesis08:09 – Bitcoin’s role vs. Ethereum’s potential14:20 – “Survive and advance” and limiting drawdowns19:20 – Time-series vs. cross-sectional momentum23:00 – VC selling behavior and regime change in momentum31:47 – Sector-level momentum trends36:13 – Shorter lookback periods and market speed39:56 – StarKiller’s investable universe and filtering process48:00 – Designing a market-neutral DeFi yield strategy52:56 – Rewards farming and bootstrapping network effects58:00 – Market-making vaults and APR opportunities01:00:10 – Managing counterparty and protocol risk01:04:02 – Has crypto alpha become more competitive?01:07:41 – One lesson for the average investor