Recently, someone asked me again, "If I put NFTs into the pool for market making, can I just sit back and collect trading fees"... Basically, the AMM curve is forcing you to buy low and sell high; with prices bouncing back and forth, the fees might not outweigh impermanent loss, especially for volatile assets with infrequent trades, which can lose money quite quietly.

When I look at pools, I see them more like order book walls: whether the depth is sufficient, whether trades happen in bursts, some look lively but are actually just people trading with themselves. By the way, after a major mainstream blockchain network recently upgraded/maintained, everyone is guessing whether projects will move away. I'm actually more concerned about whether liquidity will leave first; when the curve gets thin, slippage and losses become even harsher... Anyway, I only dare to experiment with small positions in market making now, surviving first before talking about aesthetics.