These past two days, the group has been passing around talk about stablecoin regulation, reserve audits, and rumors that “they’re about to de-peg,” and it makes people’s hearts feel uneasy. When it gets to times like this, that’s when more people go into AMMs to make markets, hoping to “eat the trading fees and bounce back,” but let’s be real—it’s not that easy money.

Look at that AMM curve and you’ll know: once the price drifts, your position gets pushed passively toward the “downward” side, and in the end, what you get back isn’t the ratio of the two coins you thought you’d receive. Whether the trading fees can cover impermanent loss depends on whether the market is volatile enough and whether trading is frequent enough—don’t just stare at the panel APR and rush in… I usually do a quick bit of back-of-the-envelope math first. If I can’t make the numbers work, I won’t be stubborn; I’d rather make a little less than get “educated.” If there’s really news about stablecoins, then market making is more like risking your body to catch the blade at the edge—got you, right?