Today the rain is a bit heavy, and the traffic on the road made my coffee cold... I casually checked the curve of the pool, and suddenly I was educated again by the loss of Impermanence. I used to think that market making = earning fees while lying around, honestly just being naive, once the price runs out of a single side, the position on the other side of the curve is "exchanged," and you see the fee income, but in fact the net value has already been eroded.

Recently, the "yield stacking" of pledge and shared security has been hotly debated. I see it a bit like a nesting doll: one layer on top of another, with the pitfalls of underlying asset volatility + liquidity curve all there, just packaged more attractively. Anyway, as a perpetual sentiment trader, I tend to impulsively add positions when I get excited, and when I lose, I honestly stop for a week... For now, that's it, no more self-deception.