Recently, I saw someone interpret large on-chain transfers and hot/cold wallet movements on exchanges as "smart money."

At first, I also felt the urge to follow along, but then I thought, never mind.
To put it simply: moving wallets doesn't mean placing orders.
Many times, it's just routing, aggregation, and risk control processes—don't scare yourself.

By the way, let's talk about AMM curves and impermanent loss.
Market making is definitely not a get-rich-quick scheme.
The curve is there, and when you provide liquidity to the pool, you're essentially helping the market automatically rebalance:
When prices fluctuate, your position is passively shifted from the rising side to the falling side.
If the transaction fees aren't thick enough, impermanent loss will eat into your gains.
Anyway, before I add to a pool now, I first check the volatility and trading volume, then see if I can handle the mental torture of "seems like profit but ends up smaller when withdrawn"...
If I can't, I’ll honestly just stick to routing and arbitrage.