Shielding DeFi Infrastructure Builders: A Call to Action

Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on protecting the creators of DeFi infrastructure and explore the failures of Ethereum's L2 strategy. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the need to protect the people building DeFi, emphasizing the importance of shielding software developers from misclassification under criminal code. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, discusses how Ethereum's scaling issues stem from a flawed assumption that the limitation was throughput, rather than the movement of value between participants. He argues that state channels offer a superior solution by enabling peer-to-peer transactions off-chain, with the base layer serving as the enforcement mechanism. As the crypto sector continues to grow, it is essential to prioritize the protection of DeFi infrastructure and the people building it, ensuring a secure and scalable foundation for the future of finance.