Recently, I keep seeing people liken AMM to Yu’e Bao… To put it simply, that curve is just locking you into a rule of “being matched against someone else’s order book at any time.” Once the price moves, your position ratio gets passively rebalanced. If the fees aren’t enough, impermanent loss will slowly eat away at you. Don’t be fooled by how steady the numbers look in the pool—actually, you’re using inventory to absorb volatility. The bigger the swings, the more it feels like you’re getting hit.

L2 has been all anyone talks about lately—more than TPS, more than fees, more than subsidies—but what I care about is this: subsidies pile up trading noise, and the MEV shadow gets thicker too. The real quality of the trades when entering and leaving the pool ends up looking even uglier. Anyway, now when I do market making, I only dare to start with small positions to test the waters—watching slippage and the trade path. If something feels off, I cancel the order… it’s like breathing.

What I’ve learned isn’t a technique—it’s that market making isn’t just lying back and collecting fees. It’s managing a stack of counterparties and risks you can’t see.