Welcome to Crypto Long & Short, our institutional newsletter. This week, we discuss the need to safeguard the people building DeFi infrastructure.
Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the importance of protecting software developers and the technology that makes DeFi valuable. 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 and has led to fragmentation rather than scaling. He proposes an alternative approach using state channels, which eliminate the need for intermediaries and allow for peer-to-peer transactions.
Other topics include the Promoting Innovation in Blockchain Development Act, aimed at protecting software developers, and the impact of smart contract exploits on the market.