Over the past two days, I’ve seen a bunch of people rushing to the testnet to farm interactions. The hottest topic is still: “Will the mainnet actually issue tokens?” I just can’t stay calm about it: don’t think of market making as easy money. The AMM curve is, in plain terms, just automatically doing price arbitrage—once you put two types of tokens in and the price moves up and down, impermanent loss may end up eating the “fees you earned,” especially when the market suddenly gets chaotic, with big slippage and even fiercer arbitrage.

For my part, I basically don’t touch those pools that look great in terms of annualized returns. I’d rather take a bit less yield and keep my assets in a cold wallet, so at least I can sleep at night. As for points and stuff, it’s all just incidental—if I really do decide to jump in, I’ll first figure out whether I can withstand the volatility. Otherwise, if the mainnet doesn’t issue tokens, there’s nowhere to make up for what you expected. Let’s talk again next time