Algoz, a quantitative digital asset investment firm and technology company, has launched Quant Pro Stake (QPS), a specialized investment product that integrates professional asset management with custody asset staking for professional and accredited holders of Ethereum (ETH), Solana (SOL) and Polkadot (DOT).
This newly created, “structured” product is built around a bifurcated allocation model designed to improve capital efficiency through a potential dual-yield stream strategy made up of staking and quantitative trading strategies. Investors holding these coins told Algoz they were looking for a low volatility investment product as they already had exposure to the coin and wanted to find ways to make the “asset” work harder.
Investors deposit their ETH, SOL or DOT into a Zodia Custody wallet, which is owned by Standard Chartered. Algoz creates one wallet per client to avoid commingling of funds, allowing each investor to retain beneficial ownership and full exposure to their underlying coins, whilst having 24-48 hour liquidity, if required.
“QPS brings two yield strategies into a single structure,” said Tal Teperberg , CEO at Algoz. “Part of the assets generate staking rewards while the remaining collateral is deployed using one of our low volatility quantitative trading strategies. The result is an almost liquid, dual-yield model built around segregated custody and continued beneficial ownership of the underlying assets.”
A Dual-Yield Stream Strategy
Algoz’s QPS investment model allocates a proportion of the deposited assets to staking through Blockdaemon or Figment. The remaining unstaked collateral is traded on Bybit exchange using one of Algoz’s specialized QPS strategies. The strategy combines quantitative sub-strategies that Algoz . These low volatility sub strategies were designed to minimize drawdowns and aim for consistent returns in addition to the staking rewards.
Trading is executed with some limited leverage on the remaining collateral that is not staked, providing controlled exposure to the strategy. Investors can also choose to use the product without any leverage on the trading component to mitigate risk profile while maintaining full staking rewards through the custody wallet.
The split allocation also maintains a proportion of the principal in a liquid trading state, providing a buffer for margin requirements and a more flexible redemption profile.
Custody Protection and Counterparty Risk
Algoz partnered with Standard Chartered-backed Zodia Custody in 2023 to establish its institutional custody structure. Under the structure, one custody wallet is allocated to each client, ensuring that investor funds are not commingled.
The deposited coins are not listed on the custodian’s balance sheet and are held in trust for the investor at all times. The custody model is intended to significantly mitigate exchange and management counterparty risk.
All assets remain in the investor’s Zodia Custody wallet, ensuring beneficial ownership is not compromised while the QPS strategy combines staking and quantitative trading.
Algoz is also registered with the U.S. National Futures Association (NFA) as a Commodity Trading Advisor and Swaps Dealer.
Hypothetical Net-of-Fees Performance
QPS performance projections combine average staking returns over the last four years with yields created in backtesting using the QPS strategy.
The QPS strategy combines sub-strategies Algoz has traded. The combination is intended to create low drawdowns and consistent returns. An accumulator of yield, whilst keeping your assets in custody, where you remain the beneficial owners, is the main aim for this product.
| Asset | Strategy | APR | Sharpe Ratio |
| SOL | QPS | 7.0% | 4.14 |
| ETH | QPS | 6.2% | 3.33 |
| DOT | QPS | 9.9% | 5.54 |
All figures are net of a 2% management fee and 20% performance fee, as well as custody and trading charges.
About Algoz
Algoz is a quantitative digital asset investment firm and technology company. The firm has operated in digital asset markets since 2017, among the earliest institutional market makers in the sector, and has since developed quantitative trading and investment strategies for professional investors.
Disclaimer
Hypothetical performance results have inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by a particular trading program.
Past performance is not indicative of future results. Digital asset investments involve a high degree of risk, including the potential loss of capital. Quant Pro Stake is for professional and accredited investors only.
