When I was a beginner, I really thought AMM liquidity provisioning was just throwing tokens into a pool and collecting fees, since the curve would "automatically make money."

Now I understand: the curve is just a pricing rule, and you're helping the market catch flying knives/absorb shocks. When the price deviates, someone (sometimes MEV bots) will conveniently swap out the more valuable side of the pool, leaving you with a bunch of relatively weaker assets. This is impermanent loss, basically you’re bearing the volatility risk for others, and fees are just subsidies; if they’re not enough, you lose money.
Recently, modular and Layer 0 discussions excite developers, but users are confused. I feel that market making is similar: it sounds sophisticated, but it’s really just taking hits during volatility… Anyway, before I add liquidity now, I make sure I understand what I’m betting on.