Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to safeguard the developers of DeFi infrastructure. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the importance of protecting these individuals, who are crucial to the growth and adoption of decentralized finance.
Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, argues that Ethereum's Layer 2 scaling strategy is fundamentally flawed, as it fails to address the issue of trust at the intermediary layer. He suggests that state channels, which enable peer-to-peer transactions without the need for intermediaries, may provide a more effective solution. We also look at the recent headlines and trends in the crypto market, including the impact of smart contract exploits and the growth of traditional finance companies' involvement in DeFi.