Last night, I was sipping tea and browsing on-chain pools, casually glanced at the AMM curve, and the more I looked, the more I felt that the phrase "market making and earning passively" is really misleading... Once the price runs out of the range (or moves aggressively in one direction), the position is like being quietly replaced, you think you're earning fees, but impermanent loss is slowly eating away at you behind the scenes. To put it simply, the curve is the rule, and rules don't care about your feelings.

Not long ago, I almost got itchy to add a pool that looked quite attractive with a high annualized yield, but at the same time, the funding rate had already become extreme, causing a heated debate in the community: is it a reversal or still a bubble squeeze? I looked for a long time but couldn’t understand what everyone was betting on, so I just decided not to move... Later, that one-sided surge and crash, the screenshots and reviews from people in the pool were pretty grim. I’m not particularly clever either, just admit defeat: if you don’t understand, don’t move first, less loss is more profit. Make fewer moves, and the evening tea tastes even better.