Recently, someone asked me again, "Just put it in the pool and you can earn fees passively"... Basically, the AMM curve is forcing you to buy low and sell high; when the price diverges, your position is passively shifted to the slower side. Impermanent loss isn't some mystical concept; it's the curve executing its rules. Even with attractive fees, you can still get wiped out during big fluctuations, especially in pools with shallow depth and emotional trading swings.

My approach to managing pools is more like organizing books in a library, rather than gambling at a casino: first, analyze volatility and depth, then decide whether to add liquidity, how much, and which range to set. I prefer to earn a little less than to become a free counterparty. By the way, recent NFT royalties have been a heated topic—secondary liquidity wants to "reduce friction," creators want "to avoid running out of funds"—and in market making, it's the same. Less friction means more trades, but who bears that cost? Sooner or later, it has to be passed on to someone’s account. Anyway, I make sure to understand the rules and risks clearly before taking action.