Recently, I saw new L1/L2 projects offering incentives to boost TVL, and in the comment section, a bunch of veterans are complaining "mining and selling," which doesn't surprise me... Many people treat market making like a savings account, but actually the AMM curve clearly shows: you're taking price volatility into your position. When the price moves, your position automatically deforms, and in the end, the pool's APR looks quite high, but when you compare it to simply holding tokens, the difference is just impermanent loss. To put it plainly, it's not "losing to someone," but losing to volatility.

What I care about more now is: who is trading in this pool, where does the volatility come from, and whether the incentives are short-lived. The stronger the incentives, the more cautious you should be—they often attract quick in-and-out traffic. When trading gets lively, LPs are more like providing exit channels for others... Anyway, before I become an LP, I always review permissions, contracts, and route signatures. Even if the returns look attractive, I don't want to risk losing my principal over a single authorization. That's all for now—being cautious never hurts.