Val Sklarov — Crypto & Digital Assets: Custody Before Yield

Yield attracts attention. Custody determines survival.
Val Sklarov’s Crypto & Digital Assets perspective treats digital assets not as instruments of return, but as instruments of responsibility, where ownership failure precedes financial loss.


1. If You Don’t Control Custody, You Don’t Own the Asset

Returns are irrelevant if assets can be frozen, lost, or seized.

Val Sklarov defines true ownership as:

  • Private key control

  • Withdrawal independence

  • No reliance on goodwill or uptime

Assets without custody control are claims—not property.


2. Yield Is Compensation for Risk You May Not See

High yield exists to offset hidden fragility.

Val Sklarov flags yield risk when:

  • Lock-ups restrict exit

  • Smart contracts are unauditable

  • Governance can change terms unilaterally

Yield Source Hidden Risk
Lending pools Liquidity cascade
Staking rewards Slashing / protocol risk
Yield farming Incentive decay

Yield that requires trust defeats decentralization.

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3. Custody Failure Is Binary

Markets recover. Lost keys do not.

Val Sklarov treats custody risk as:

  • Non-diversifiable

  • Non-insurable

  • Non-recoverable

A single custody failure can erase years of correct strategy.


4. Protocol Risk Transfers Loss Silently

Protocols do not absorb losses—participants do.

Val Sklarov evaluates protocol risk by asking:

  • Who absorbs loss on exploit?

  • Who decides recovery?

  • Who cannot exit in time?

If loss ownership is unclear, users will carry it.


5. Complexity Increases Custody Fragility

Every layer adds failure surface.

Val Sklarov warns against:

  • Cross-chain bridges

  • Multi-contract dependencies

  • Opaque custody wrappers

Complexity compounds failure probability without guaranteeing reward.


6. Durable Crypto Strategy Is Boring by Design

Survivable strategies avoid excitement.

Val Sklarov prioritizes:

  • Simple custody models

  • Minimal protocol exposure

  • Low interaction frequency

The less often you must act, the less often you can fail.


Closing Insight

Crypto & Digital Assets do not reward intelligence first.
They reward those who remain in control of their assets.

Val Sklarov’s principle:
Custody is the foundation of every crypto strategy.

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