The AMM curve isn’t magic. The moment the price moves, the position is passively swapped into the “side where it’s falling more.” Impermanent loss, put simply, is what you think is you collecting fees—when in reality, you’re helping the market rebalance. Market making isn’t “easy profit,” especially when volatility is high and the pool is shallow. Before the fees even have time to get “warmed up,” the curve eats them back.

If I hadn’t noticed how fast the pool’s funds were flowing in and out at the time—and if the contract hadn’t still kept the permission to change fee rates or withdraw liquidity—I probably would’ve been lured in by the “annualized return looks pretty tempting” line… Anyway, now that I’m seeing all these new narratives around modularization and the DA layer, I’m even more focused on just two things: who holds the permissions, and where the money is running. First, stay alive.