Safeguarding DeFi Infrastructure Builders

Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to protect those building DeFi infrastructure. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the importance of safeguarding the people behind DeFi. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, discusses the flaws in Ethereum's L2 strategy, which he believes was designed around the wrong assumption that the platform's limitation was throughput, rather than how value moves between participants. He suggests that state channels could be a solution, allowing for peer-to-peer transactions without the need for intermediaries. The newsletter also features expert insights from various industry leaders, including a discussion on the Promoting Innovation in Blockchain Development Act, which aims to protect software developers from misclassification under criminal code. Additionally, the newsletter covers recent headlines, including the impact of smart contract exploits on the market, and features a chart of the week, which shows Aave's market share slide after the rsETH exploit.