These days, I took another look at the AMM curves, and the more I watch, the more I realize that market making is really not just "lying there and earning passively." When the price deviates, the position is automatically adjusted along the curve to the side you don't really want, and the trading fees haven't even heated up yet, while impermanent loss comes to say hello... Basically, it's betting against your own volatility.

Recently, some regions are tightening and loosening regulations on taxes and compliance, causing deposit and withdrawal expectations to become very unpredictable. When emotions run high, volatility becomes even more intense, and LPs in the pool are actually the first to passively react. I now prefer small positions for testing, focusing on on-chain activity and trading volume, rather than getting itchy just because of APY. Let's see.