As of March 4, 2025, DeFi projects losing millions to protocol vulnerabilities (e.g., hacks) demand rigorous risk assessment. A research framework includes: 1) Security Audit: Verify recent, reputable audits—unaddressed flaws signal red flags. 2) Team & Governance: Assess developer track record and decentralization level; weak oversight raises exploit risks. 3) Tokenomics: Examine liquidity locks and vesting—overexposure risks dumps post-hack. 4) Market Sentiment: Monitor X for panic or trust; Fear & Greed at 16 suggests caution. 5) Historical Performance: Compare past exploits (e.g., $10M losses) to recovery patterns. 6) Macro Context: Factor in Bitcoin’s 56.8% dominance and 4.2% CPI volatility. Weigh high yields against potential total loss in this fragile sector.