Safeguarding DeFi Infrastructure Builders

Welcome to Crypto Long & Short, our institutional newsletter. This week, we explore the need to safeguard the people behind DeFi infrastructure. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the growing understanding of open-source technology in finance and the importance of protecting it. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, comments on Ethereum's scaling problem, arguing that the rollup model was designed around the wrong assumption, focusing on throughput rather than how value moves between participants. He suggests state channels as a solution, allowing peer-to-peer transactions off-chain with the base layer serving as the enforcement mechanism. The newsletter also covers the week's headlines, including the impact of smart contract exploits on the market, and features a chart showing Aave's market share slide after the rsETH exploit.