I used to really think that doing AMM was just “collecting fees and making money passively,” but impermanent loss taught me a hard lesson: once the price drifts off, you’re essentially passively buying low and selling high along a curve. The fees you earn don’t even cover the hole, and the more you look, the more it starts to feel like you’re just acting as a tool for the market... Now, before I add liquidity, I ask myself one question: do I want to profit from volatility, or do I want to bet that the price won’t move? If I don’t want to gamble, then I’ll be honest about it—I’ll stick to tight price ranges and use some hedging instead of relying on prayers. The recent controversy around that “yield stacking” kind of staking strategy also feels very similar. Plainly put, it’s just hiding risk inside the structure: it looks attractive, but when something goes wrong, you only find out that the blame is queued up behind the scenes. Anyway, I don’t blindly believe in “passive income” anymore—I’ll make sure I write out the places that can go wrong before I ever jump in.