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These days, everyone is talking about modularization and the DA layer, and developers are excitedly discussing it, but I, from a user perspective... just want to make sure I don’t click the wrong wallet first😂
By the way, I was asked again by a newbie: Is AMM market making a passive income? Honestly, no. The curve of an AMM will automatically “rebalance” for you; when the price fluctuates, the ratio of the two tokens you hold passively changes. When you try to withdraw, you might find that it’s not better than just leaving everything as it was—this is impermanent loss, which only “reverts” when the price returns to its original relative position. Fees can offset some of that, but they’re not a cure-all, especially in pools with high volatility; the fees earned might not be enough to withstand a sudden sharp drop or surge. Anyway, before I add to a pool now, I always ask myself: Am I willing to be forced to keep buying the dip and selling the rally… If not, I’ll hold back a bit to keep things simple.