According to IntoTheBlock, as the DeFi sector evolves in 2025, technical risks such as smart contract bugs and code exploits are decreasing due to improved security standards, but economic risks remain significant for traders. Economic risks include factors like protocol incentives, liquidity gaps, and market manipulation, which can cause unexpected losses despite secure code (source: IntoTheBlock, May 2, 2025). Traders should closely monitor economic risk metrics, including liquidity depth and incentive structures, before entering DeFi positions to optimize risk-adjusted returns.