Honestly, recently the funding rates have become extremely extreme again, and in the group people are arguing whether this is a reversal signal or just more bubble squeezing. My first reaction isn't to chase the trend, but to think: many people treat AMM market making as a passive income, but actually the curve determines whether you're selling high and buying low (or vice versa). Once the market moves in a single direction, your position will passively become less comfortable, and impermanent loss is like chronic bleeding. When the rates are very exaggerated, it's even more obvious: on one side, perpetuals are forcing people to pay tuition; on the other side, you see the fees flowing into the pool, but the net value is being eroded by the curve... I’m not sure which side will end first, but anyway, I now consider the worst-case scenario in market making. Earning fees shouldn’t make you too excited; discipline is more reliable than feeling like the market is about to reverse.