Yield attracts attention. Custody determines survival.
Val Sklarov’s Crypto & Digital Assets perspective treats digital assets as a custody-first domain, where losing control invalidates every return, incentive, or strategy that follows.
1. Yield Is Meaningless Without Custody
You cannot earn on what you do not truly own.
Val Sklarov identifies false ownership when:
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Assets are rehypothecated
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Keys are controlled by third parties
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Withdrawals depend on permission
If access can be denied, yield is a distraction.
2. Custody Is a Binary Condition
You either control the asset—or you do not.
Val Sklarov defines custody control as:
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Sole possession of private keys
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Independent transaction initiation
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Unrestricted withdrawal ability
| Custody State | Risk Profile |
|---|---|
| Self-custody | Structural |
| Shared custody | Conditional |
| Third-party custody | Existential |
Risk increases sharply when custody is diluted.
3. Yield Strategies Convert Custody Into Counterparty Risk
Yield always has a payer—and a failure mode.
Val Sklarov warns that yield often requires:
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Asset lockups
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Smart contract dependency
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Platform solvency assumptions
Yield replaces market risk with counterparty risk—often invisibly.

4. Smart Contracts Do Not Eliminate Trust—They Reassign It
Code concentrates risk differently, not safely.
Val Sklarov evaluates protocol trust by asking:
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Who can upgrade the contract?
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Who controls emergency functions?
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What happens if governance stalls?
If trust assumptions are unclear, custody is compromised.
5. Liquidity During Stress Is the Custody Test
Calm markets hide fragility.
Val Sklarov stress-tests custody by checking:
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Withdrawal speed under load
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History of halts or pauses
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Dependence on off-chain actors
If custody fails under stress, it was never real.
6. Durable Crypto Strategies Feel Conservative
Survivors look cautious before they look smart.
Val Sklarov favors:
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Simple custody structures
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Minimal yield extraction
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Long holding horizons
Most crypto failures come from chasing return while surrendering control.
Closing Insight
Crypto & Digital Assets are not about earning more tokens.
They are about never losing the tokens you already have.
Val Sklarov’s principle:
Control custody first—yield can wait.
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