These days I see a bunch of people rushing to testnet to trade interactions, saying they’re testing the product experience, but secretly calculating whether the mainnet will issue tokens… I understand, after all, who doesn’t want to profit from arbitrage, but don’t casually throw your money into market making and think you’re earning passively.

The curve of AMM is basically: when the price moves, your position is passively shifted to the side that’s “gaining less.” When the market shakes, you see the assets in the pool change, which is actually impermanent loss quietly taking your fee. Can the trading fee cover it? Just look at the volatility and trading volume—no need for too much mysticism.

An analogy in daily life: you open a small shop, setting a rule that the total price of cola and mineral water always adds up to a set amount. Then suddenly, the neighboring shop runs out of cola and raises the price, your shop’s cola sells out, leaving a bunch of mineral water behind… You think you’re making sales, but actually you’re leaving cheap goods for others. Market making is the same. Let’s leave it at that—don’t keep “clicking, clicking” until you realize you’re just a liquidity charity.