Recently, someone took a detour by talking about stablecoins and said, "Off-chain funds are coming in, ETF is pushing the market up steadily," and hearing that gave me a bit of PTSD... The correlation thing really can be very deceiving. An increase in stablecoins might be for market making, hedging, arbitrage, and preparing ammunition first, or it could be that everyone just wants to avoid volatility and stay on the sidelines. The same goes for ETFs; inflows look lively, but that doesn't necessarily mean the on-chain market will take off, as there are several layers of emotions and risk controls in the middle of the path.

So, do I still dare to be an LP now?
I dare, but I will first run through the worst-case scenario before jumping in.

By the way, looking at Layer 2, they compare TPS, fees, and ecosystem subsidies every day. They talk big, but when it comes to the pool, once rewards stop and volatility hits, impermanent loss still teaches me a lesson... Anyway, I’d rather earn a little less now than get fooled again by a "storyline."