DeFi must prioritize risk management over high yields, says Sentora VP

DeFi needs to shift its focus from high-yield marketing to prioritizing risk management, according to Juan Manuel Pellicer, vice president of research at Sentora, formerly known as IntoTheBlock. In an interview with DL News, he argued that existing DeFi vaults have been overly focused on Annual Percentage Yield (APY) and have failed to transparently provide users with specific risk metrics. Pellicer stressed the need for intelligent, automated systems that put risk management first. He added that the ecosystem will only grow if DeFi evolves from being a simple means of depositing assets into a financial infrastructure that operates on transparent rules.