Welcome to our institutional newsletter, Crypto Long & Short. This week, we focus on the need to safeguard the individuals building DeFi infrastructure. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the importance of protecting the technology and infrastructure that makes DeFi valuable.
She highlights high-level policy objectives worth defending, including software developer protections. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, comments on Ethereum's L2 strategy, arguing that it is failing due to a fundamental design flaw. He suggests that state channels could be a solution, allowing participants to transact peer-to-peer off-chain and eliminating the need for intermediaries. The newsletter also features headlines of the week, including the impact of smart contract exploits on the market, and a chart of the week showing Aave's market share slide after the rsETH exploit.