Safeguarding the Architects of DeFi Infrastructure

Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to safeguard the individuals building DeFi infrastructure. As traditional finance companies increasingly engage with DeFi, it is crucial to protect the technology and infrastructure that underpin this ecosystem. The DeFi Education Fund, a nonpartisan nonprofit, invites you to join us in defending key policy objectives. Recently, a bipartisan bill was introduced to protect software developers from misclassification under criminal code. This legislation aims to provide clarity and foster innovation in the blockchain space. Furthermore, Alexis Sirkia discusses the limitations of Ethereum's L2 strategy, arguing that the rollup model was flawed from the outset, and that state channels offer a more promising solution for scaling. The newsletter also covers recent headlines, including the impact of smart contract exploits on the market, and features a chart analyzing Aave's market share following a recent exploit.