Recently, someone told me again, “Throw it into the pool for market making—lie back and collect the fees,” and I almost laughed the pillow right off… The AMM curve, put simply, is that you’re automatically buying low and selling high. Once the market moves in only one direction, your positions get “adjusted by force” with your legs pulled. Impermanent loss isn’t just something to scare you—it’s you waking up to find you’ve been holding a bunch of “the side that grows more slowly.” Can the fees cover it? Look at volatility and trading volume—more often than not, it really comes down to luck and mindset.

The twist is: it’s not completely impossible to do. What I do now is only choose the two sides that I’m already willing to hold long-term, with smaller positions. If I make money, it’s like an extra treat; if I don’t, I treat it as tuition. As for the recent strategy of re-staking and shared security yields stacked on top of each other like a nested doll—I just find it hard to stay awake watching it. The more layers there are, the more likely problems can show up in any one of them, enough to keep you up at night. Anyway, I’d rather earn a little less than be jolted awake by on-chain alerts.