Welcome to Crypto Long & Short, your institutional newsletter. This week, we explore crucial topics in the world of decentralized finance. Jennifer Rosenthal, Chief Communications Officer at the DeFi Education Fund, emphasizes the need to protect the individuals building DeFi infrastructure, highlighting the importance of open-source, permissionless, programmable, noncustodial, globally accessible, and interoperable technology.
Meanwhile, Alexis Sirkia, Chairman and Co-Founder of Yellow Network, discusses Ethereum's scaling issues, arguing that the rollup model was misguided in its focus on throughput rather than the movement of value between participants. Sirkia advocates for state channels as a more effective solution, allowing for peer-to-peer transactions off-chain with the base layer serving as the enforcement mechanism. Additionally, we touch on the CFTC's upcoming approval of the first U.S. framework for perpetual futures and its potential impact on the crypto derivatives market.
The week's headlines are also summarized, including the devastating effects of smart contract exploits and Aave's market share decline following the rsETH exploit.