The emergence of blockchain technology has fundamentally transformed the financial landscape, giving rise to Decentralized Finance (DeFi) as a disruptive alternative to traditional financial systems. In the prior phase, financial services were predominantly centralized, relying on intermediaries such as banks and financial institutions, which often resulted in inefficiencies, high transaction costs, and limited accessibility. The introduction of blockchain laid the foundation for decentralization by enabling transparent, secure, and peer-to-peer transactions without the need for intermediaries. In the present context, blockchain-driven DeFi ecosystems have rapidly expanded, offering innovative financial services including decentralized lending, borrowing, trading, and asset management through smart contracts. These developments have significantly enhanced financial inclusion, operational efficiency, and user autonomy. However, the growing adoption of DeFi also introduces critical risk dynamics, such as cybersecurity vulnerabilities, smart contract failures, regulatory uncertainty, market volatility, and issues related to governance and trust. Looking toward the future, DeFi is expected to evolve into a more integrated and regulated component of the global financial system, driven by advancements in artificial intelligence, interoperability protocols, and scalable blockchain infrastructures. The convergence of DeFi with emerging technologies may further redefine financial ecosystems, enable autonomous financial systems and inclusive digital economies, while also necessitate robust regulatory frameworks and risk mitigation strategies. The aim of the researchers in their research is to critically examine the opportunities and evolving risk dynamics associated with blockchain-driven DeFi within the digital economy.