Summary:
DeFi protocols have faced significant economic risks, resulting in nearly $60 billion in losses across the platforms. This number only reflects losses at the protocol level, while individual user losses due to various economic risk factors may be much larger. Understanding and managing these risks is crucial for DeFi participants, as they can impact both protocols and individual users’ strategies. Key steps include deep diving into protocol mechanics, monitoring market indicators, and creating a holistic risk profile to effectively navigate the challenges of multi-protocol strategies and protect positions.
Key Facts:
1. Economic risks have led to nearly $60 billion in losses across DeFi protocols. 2. Individual user losses due to various economic risk factors may be much larger than the reported figure at the protocol level.
