Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the importance of protecting those who build DeFi infrastructure.
Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the need to defend the people behind DeFi. She highlights the introduction of the bipartisan Promoting Innovation in Blockchain Development Act, which aims to protect software developers from being misclassified under criminal code. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, critiques Ethereum's L2 strategy, arguing that it was designed to address the wrong problem - throughput rather than value transfer between participants.
He advocates for state channels as a more effective solution, allowing for peer-to-peer transactions without intermediaries. The newsletter also covers recent market trends, including the impact of smart contract exploits on the market and the shifting landscape of crypto derivatives.