Recently, I took another look at the AMM curve, and the more I watch, the more I realize that market making is definitely not a fairy tale where you just lie back and collect fees... When prices drift away, positions are "automatically rebalanced" along the curve, essentially meaning passive high-selling and low-buying execution. When the market moves in a single direction, impermanent loss can be really painful. Whether the fees can cover it often depends on volatility and trading volume, so now I prefer to put less into pools with less extreme fluctuations, and casually glance at audits and parameters to feel more at ease. The kind of inflation + coin price spiral driven by studio manipulation in blockchain games is actually quite similar: surface excitement, but if the underlying incentives go off track, whoever is in the pool ends up suffering... Anyway, I’ll be cautious for now, and we can chat more next time.