People ask me whether AMM market making is just something you set there and then lie back to earn easy profits. I usually say: don’t get carried away… At the end of the day, the curve is simply automatically swapping you in and out on a fixed proportional basis. Once the market runs off course, your position gets “passively adjusted” into that kind of shape where you gain less on the upside and lose more on the downside. Impermanent loss isn’t some kind of mysticism—it’s basically the gap between just holding outright versus what you end up earning or losing relative to that, i.e., the difference where you make less or lose more.

Recently, there’s been a whole bunch of AI agents and automated trading accounts running around on-chain, hyping the narrative to the sky—but what I care about more is what permissions they use to interact with you: unlimited approvals, direct hot-wallet connections, script hosting, and so on. Just hearing that makes my scalp crawl. Anyway, when I provide liquidity (LP), I’ll calculate the worst-case scenario first too—if the amount can be small, keep it small; if you can use multi-signature and/or layered permissions, use them. Earning some trading fees is fine, but don’t sell your sense of security for the sake of “automation.” That’s it for now.