Bear markets can expose a gap in portfolio construction: too much of a portfolio’s performance may depend on the same market conditions.
For crypto investors, adding more assets doesn't necessarily mean adding different sources of return. A portfolio can hold multiple tokens and still remain heavily exposed to market direction.
csLYD introduces a different source of potential returns through market-neutral strategies. Instead of depending primarily on crypto prices rising, these strategies seek opportunities in market activity, such as funding payments between perpetual futures traders.
However, these opportunities are market-dependent. Funding rates can turn negative, reducing or eliminating the attractiveness of a strategy. csLYD’s approach is to access these alternative return sources, not to assume they will remain profitable in every market condition.
Diversification is not just about holding different assets. It's about understanding what drives each position's performance.