Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to safeguard the people behind DeFi infrastructure.
Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the importance of protecting these individuals and the technology they create. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, analyzes Ethereum's scaling issues and argues that the rollup model was flawed from the start, as it addressed congestion but created isolated liquidity pools.
He proposes state channels as a more effective solution, enabling peer-to-peer transactions off-chain and reducing the need for intermediaries. The newsletter also covers recent headlines, including the impact of smart contract exploits on the market, and features a chart showing Aave's declining market share following the rsETH exploit.