Recently, I saw someone say "Just toss it into the pool and earn passively," and I want to laugh but I don't dare to laugh too loudly... The AMM curve, to put it simply, is you following the price movement; when the price fluctuates, the ratio of the two tokens you hold is automatically swapped back and forth. In the end, the transaction fees seem attractive, but after calculating, the impermanent loss might eat up half of your gains and dampen your mood. Market making is more like collecting rent but requires bearing the volatility of the asset price, not just depositing fixed-term.

Recently, in the group, there’s been a cycle of discussions about stablecoin regulation, reserve audits, and various rumors about "de-pegging," which makes everyone nervous and eager to find a "safe" place to hide. The more anxious they get, the more they love to pile into pools. My approach is still old-fashioned: first, check if the on-chain activity is not too explosive, whether the pool depth is sufficient, and if volatility is increasing. Better to earn less than to risk being wiped out by impermanent loss.

By the way, I want to complain: my partner watched me stare at the impermanent loss curve for half an hour and asked if I was studying tide tables... I said something like "pretty much," since it’s all about the rise and fall that smooths people out.