Vincent Maliepaard, Marketing Director at IntoTheBlock, discusses the economic risks in DeFi, which have resulted in significant losses. While protocol-level losses are substantial, individual user losses due to various economic risk factors are likely even higher. Economic risks in DeFi include financial loss from market conditions, liquidity crises, flawed protocol design, and external events. These risks exist at both protocol and user levels, with protocols implementing safeguards to limit exposure. However, user-level risks, such as leverage, liquidations, and impermanent loss, are often overlooked. Managing economic risks in DeFi requires a personalized approach to mitigate individual risks. Additionally, the interconnected nature of risks across multiple protocols necessitates careful risk management by users. By understanding protocol mechanics and market indicators, users can navigate the complexities of multi-protocol strategies effectively. Read more AI-generated news on: https://app.chaingpt.org/news