Welcome to Crypto Long & Short, our institutional newsletter. This week, we're focusing on the need to safeguard the people building decentralized finance infrastructure. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the importance of protecting these individuals, as they are crucial to the growth and development of DeFi. She highlights the introduction of the Promoting Innovation in Blockchain Development Act, which aims to protect software developers from misclassification under criminal code.
Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, discusses Ethereum's scaling problem, arguing that the rollup model was flawed from the start, as it addressed congestion but created isolated liquidity pools. He suggests that state channels, which enable peer-to-peer transactions off-chain, could be a more effective solution.
The newsletter also features headlines of the week, including the impact of smart contract exploits on the market, and a chart of the week, which shows Aave's market share sliding after the rsETH exploit.