Decentralized finance (DeFi) is witnessing a significant comeback, echoing the high-growth era of the 2021 DeFi Summer.

The expansion of DeFi brings with it heightened concerns about potential risks due to scale, complexity, and interconnectivity.

Jesus Rodriguez of IntoTheBlock highlights that DeFi's growth complicates existing risk models, making them less effective.

Modern DeFi's primary risks include its large scale, rapid development, intricate financial operations, and the tight interconnection of protocols.

Protocols such as Ethena and EigenLayer demonstrate the difficulties in adjusting risk and insurance frameworks to match their quick expansion.

There's a noticeable shift in DeFi risk concerns from just technical issues, like hacks, to economic risks associated with the sector's evolution.

With a limited number of enterprises addressing DeFi risk assessment, the industry is struggling to keep pace with the changing environment.