Recently, someone said, "Just throw it into the pool and lie back to collect fees," and every time I hear that, I want to roll my eyes... The AMM curve is basically just automatically helping you buy low and sell high. When the market swings up and down, your position gets rebalanced, but the fees might not outweigh the impermanent loss, especially during high volatility. It's really not a get-rich-quick scheme.



Moreover, on-chain data tools and tagging systems are also criticized for being laggy and potentially misleading. I’m even less willing to just follow the "smart money" tags given by others to jump into pools. I prefer to monitor contract interactions and transfer paths myself, even if it’s slower, I feel more at ease. Anyway, I always take screenshots before I start market making... Not for anything else, but so I can look back in a few days and see what I was thinking at the time.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments