Defending DeFi Builders: The Key to Unlocking Decentralized Finance

Welcome to our Crypto Long & Short newsletter. This week, we delve into the importance of safeguarding the people building DeFi infrastructure and explore how Ethereum's Layer 2 strategy is struggling due to a flawed design. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the need to protect the developers and infrastructure of DeFi, highlighting the introduction of the bipartisan Promoting Innovation in Blockchain Development Act. Meanwhile, Alexis Sirkia discusses how Ethereum's scaling issue stems from a misunderstanding of its limitations, proposing state channels as a potential solution. We also examine the impact of recent smart contract exploits on the market and the shift in regulatory frameworks for crypto derivatives.