Recently, some people have been treating AMM as a piggy bank again, and I really get nervous just by looking at the TVL… The shape of the curve determines how you are "bleeding out," and if the price deviates, the small fees you earn might not even cover impermanent loss. To put it simply, market making isn't about lying back and collecting rent; it's about using positions to exchange volatility.

These days, the unlock schedules for staking and tokens are being brought up again, which is frightening. I can actually stay calm: I’m used to calculating in my head, before impulsively adding to a pool, “If the price moves one-sidedly for a while, will I feel uncomfortable?” (rough calculations are fine). After doing the math, I only enter if I still want to, otherwise I’m just providing liquidity out of anxiety… Let’s start with that.