Just now, I saw someone talking again about “throwing coins into the pool and lying there collecting fees,” and I felt a bit like sighing… The AMM curve, to put it simply, is just you helping the market to quote automatically. When the price moves, your position is passively bought and sold, impermanent loss is not mysticism; the more volatile the rise and fall, the more obvious it is. Of course, fees can compensate, but many times they don’t make up for it, especially during large fluctuations. Watching the gains increase, and then realizing the principal is a bit less when withdrawn, that sense of disappointment is quite real.

It also reminded me of the recent disputes over privacy coins/mixing compliance, with the community tearing each other apart quite fiercely. Actually, market making is the same; boundary awareness is very important: you might think you’re just “providing liquidity,” but what you’re really taking on are path dependencies and risk exposure. Anyway, I now prefer small positions, trying periodically to withdraw and take a look, don’t treat “automatic curve operation” as a safe deposit box.