Investment Philosophy
Flowtrack will invest in the most impactful blockchain projects during what we see as a multi-decade decentralized model innovation cycle. Long-term conviction in our protocols will be the key to our success, regardless of heavy market drawdowns, choppy institutional sentiment, and short-term noise.
Our Investment Process
01.
Research & Advisory
In addition to qualitative factors such as team strength, Flowtrack’s decision-making is driven by traditional as well as proprietary quantitative metrics.
Our evaluation of the current and future cash flow earning potential of projects allow us to invest in protocols with the greatest value, while avoiding those that are largely speculative.
02.
Evaluation & Shortlisting
A robust method to quickly assess the protocols with the greatest long-term impact is essential in this rapidly evolving market.
Our decision-making process is based on the inputs of a diverse team with vastly different experiences and our proprietary research. This approach is one of the most instrumental differentiators of Flowtrack.
03.
Trading Strategy
Flowtrack is focused on finding the best protocols to own over the long term. However, trading strategies will be used periodically to take advantage of insights gleaned from significant market shifts.
04.
Staking Strategy
The ultimate goal is to create staking value accrual through maximum diversification to adjust for risk without sacrificing potential returns.
Flowtrack will interact with all three major methods of staking:
- Custodian Products
- Proof-of-Stake Blockchains
- Protocol-Specific Staking
We construct our portfolio based on due diligence of the financial fundamentals, as well as how the protocols will replace traditional infrastructure and business models. Given our view that we are at the beginning of a multi-decade disruption by blockchain technology, our portfolio and its weightings will evolve as the market does
Current allocation of emerging protocols
*Blue-Chip DeFi:
*Blockchain Infrastructure:
* Small & Mid-Cap:
Blue-Chip DeFi:
50% allocation to proven decentralized finance protocols (e.g., exchanges, derivative markets, aggregators, and asset managers).
Blockchain Infrastructure:
35% allocation to blockchain infrastructure with varying consensus mechanisms and value propositions.
Small & Mid-Cap:
15% allocation to up and coming high-conviction decentralized projects with tremendous market potential.
We construct our portfolio based on due diligence of the financial fundamentals, as well as how the protocols will replace traditional infrastructure and business models. Given our view that we are at the beginning of a multi-decade disruption by blockchain technology, our portfolio and its weightings will evolve as the market does.
Blue-Chip DeFi:
50% allocation to proven decentralized finance protocols (e.g., exchanges, derivative markets, aggregators, and asset managers).
Blockchain Infrastructure:
35% allocation to blockchain infrastructure with varying consensus mechanisms and value propositions.
Small & Mid-Cap:
15% allocation to up and coming high-conviction decentralized projects with tremendous market potential.
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60%
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100%
We construct our portfolio based on due diligence of the financial fundamentals, as well as how the protocols will replace traditional infrastructure and business models. Given our view that we are at the beginning of a multi-decade disruption by blockchain technology, our portfolio and its weightings will evolve as the market does.
Blue-Chip DeFi:
50% allocation to proven decentralized finance protocols (e.g., exchanges, derivative markets, aggregators, and asset managers).
Blockchain Infrastructure:
35% allocation to blockchain infrastructure with varying consensus mechanisms and value propositions.
Small & Mid-Cap:
15% allocation to up and coming high-conviction decentralized projects with tremendous market potential.
