Defending DeFi Infrastructure and the Pitfalls of Ethereum's L2 Strategy

Welcome to our Crypto Long & Short newsletter. This week, we delve into the need to safeguard the people building DeFi infrastructure and explore the shortcomings of Ethereum's L2 strategy. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the importance of protecting software developers who create DeFi infrastructure. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, argues that Ethereum's scaling issues stem from a flawed assumption about the nature of the problem. He suggests that state channels offer a more promising solution by enabling peer-to-peer transactions without intermediaries. We also examine the recent market trends, including the impact of smart contract exploits on the market and the shifting landscape of crypto derivatives.