Safeguarding DeFi Infrastructure Builders

Welcome to Crypto Long & Short, our institutional newsletter. This week, we explore the need to protect DeFi infrastructure builders. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the importance of safeguarding the people building DeFi. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, comments on the limitations of Ethereum's L2 strategy, citing its failure to deliver a unified scale due to a fundamental design flaw. We also invite you to join us in defending the policy principles that make building and using DeFi possible. Additionally, we discuss the recent Promoting Innovation in Blockchain Development Act, which aims to protect software developers from misclassification under criminal code. As the DeFi landscape continues to evolve, it's crucial that we support legislative and regulatory initiatives that foster clarity and enable responsible participation. We also examine the challenges faced by Ethereum's L2 strategy, including the fragmentation of liquidity pools and the concentration of capital. Furthermore, we look at the potential of state channels to eliminate the need for intermediaries and provide a more secure and efficient way to transact. The CFTC's preparation to approve the first U.S. framework for perpetual futures is also expected to have a significant impact on the market. In conclusion, we emphasize the need for a collective effort to shape thoughtful and durable policy outcomes that support the growth of DeFi.