Just took a walk by the beach, and as I passed by I checked the AMM curve. The more I look at it, the more I feel that market making really isn’t “lying down and earning.” Once the price drifts off, the pool automatically rebalances for you according to the formula: you end up with a bit more coins, a bit less money. Then when you circle back and算 it again, the impermanent loss quietly lands. To put it plainly, you’re selling volatility and earning trading fees—if the fees aren’t enough, don’t try to force it.

These past two days, the group has been circulating talk about stablecoin regulation, reserve audits, and all kinds of rumors about “de-pegging.” Once everyone’s emotions flare up, they want to stuff their money into pools to “seek shelter,” but the result is even higher volatility and the curve getting eaten away faster. Anyway, for now I only keep funds in pools I can understand, with smaller positions—if the fee rate and the risk don’t line up, I withdraw. That’s where I’m at for now.