Last night I got itchy again and added some liquidity to AMM, originally wanting to "sit back and earn fees," but today I saw the curve suddenly turn, and my position was directly swapped to the side I didn't want to hold more of... Basically, impermanent loss is: you think you're market-making, but you're actually passively chasing the rise and fall. The fee collection is there, but if the price moves sharply, the fees might not be enough to cover it.

Now I've learned my lesson, I set reminders/limits for myself, and if I exceed them, I force a withdrawal. My mindset has actually become more stable: earning less still lets me sleep, at least I won't wake up to find that "I've completely turned into XX." By the way, the NFT royalty debate is heated—creators want to earn more, traders complain about liquidity being squeezed... Anyway, whenever I hear "passive income," I get cautious, especially since I have the amnesia problem after minting, and I need an alarm clock to fix it.