Recently, I saw someone refer to AMM as "deposit and just eat the fees," and I can't help but laugh but also feel a bit exhausted... The thing with curves, to put it simply, is that you're quoting prices using your own position for others. When the price deviates, you’re passively selling on the rising side and buying back on the falling side. Impermanent loss isn't some mystical concept; it's hardcoded into the mechanism. When the market fluctuates, if the fees aren't enough to fill the gaps, it becomes quite awkward.

Thinking about blockchain games, their economic collapses are actually quite similar: once inflation kicks in, studios rush in, the token price slides, and the system accelerates the spiral. Participants think they’re "farming," but in reality, they’re just settling risks among each other. Anyway, I now see pools more as a way to pick out "sources of volatility," not just focusing on APR... Let’s see.