After getting back from a night run, I casually checked the few commonly viewed L2 charts, and it reminded me that recently some people have been treating AMM like a money market fund. Put simply, the curve is just there: whatever you provide to the pool is the quote, and when others trade, they move along that curve and “eat” you into a new price range. Once the price starts moving, your position automatically becomes more lopsided. While it looks like trading fees are going up, impermanent loss is quietly building up too—not the kind of thing you just lie back and collect rent from.

Especially now, with the funding rate pushed to extremes, and the chat debating whether to reverse or keep squeezing the bubble, I’m actually being even more cautious. The more volatility there is, the more market-making feels like using yourself as a buffer. In any case, I’d rather make a little less in fees than wake up the next day to find I’ve passively swapped a bunch of coins I don’t want. That’s it for now.