Last night, someone was again saying, “Throw it into the pool and lie back to collect trading fees.” It sounds like they’re treating the AMM curve as deposit interest… Actually, the curve is just an automatic rebalancing machine—once the price moves, you end up passively buying more expensive / selling cheaper. Impermanent loss, put simply, is you following the curve and chasing the market; in the end, you end up with a pile of the other assets you don’t really want to hold more of. Whether the fees can cover it all depends entirely on how much the price swings and whether you can stomach it.

Lately, the wave of AI agents and automated trading has been pretty hot too. Some people are hyping “fully automated market making,” but I care more about this: contract permissions, the size of the authorization, and who helps you slam the brakes during a drawdown. I watched on-chain trades for a while—my eyes were killing me, and my neck got stiff… Anyway, for me, market making is only something I treat as a strategy now, not a belief. Don’t follow the hype all the way until the last second.