Someone always told me that AMM market making is pretty low effort, just put in the funds and collect fees… I followed that idea to “reproduce” it: for the same trading pair, when the price swings back and forth, the curve forces you to automatically sell high and buy low, the fees seem to be increasing, but the position is quietly changing, and impermanent loss is basically the cost of your passive position switching.


Later I realized that paying too much attention to on-chain data tools’ labels can easily lead you astray: they mark “smart money is increasing their position,” but with a delay, you chase in just after the volatility, and the IL is amplified.
Now my approach is very simple: treat market making as a strategy exposed to volatility, hedge when possible, and reduce exposure when not, don’t take “automatic curve profits” too seriously.
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