Today I looked back at my previous records of market making in the pool. To put it simply, the AMM curve is like an automatic betting against you: when prices go up, you sell too early; when they go down, you buy in deeper. The amount of tokens looks like it's increasing, but when converted to money, it might not necessarily be. Market making is really not passive income; the fees also have to beat impermanent loss... I'm not regretful about the outcome, but rather about only focusing on the word "annualized" at the time, without first thinking clearly about what kind of volatility I was actually taking on.

Recently, the "compound yield" of staking and sharing security has been criticized as a copycat scheme. I can understand that; the returns look quite attractive, but the underlying risks are also stacking up, with the chain experiencing sudden winds and rains. Anyway, I now prefer to think of it like checking the weather forecast: if the wind is strong, I shrink my position a bit, just to stay alive first.