These past two days, people have again asked me, “Is AMM market making just lying there and collecting fees?” I don’t even know how to persuade them… Put simply, the “curve” thing is basically you helping the market automatically rebalance. When the price moves up or down, your position is passively pushed toward the side that performs worse. Impermanent loss isn’t some mysterious thing—it’s built into the mechanism. Whether the fees can cover it depends on volatility and trading activity. If there’s no trading, forget it.

Recently, discussions around rate-cut expectations and the US dollar index have been pretty noisy. Risk assets are rising and falling together for a while, then decoupling the next—anyway, I’m not the kind of person who dares to rely on “a macro shift will make everything stable.” My colleague also said, “Aren’t you making markets on stablecoins? Shouldn’t it be fine?” I could only smile: stablecoin pools aren’t absolutely stable either. If they de-peg or liquidity gets pulled away, I still won’t be able to sleep.

Right now, when I do market making, I basically only pick the assets I can accept holding. I test with small positions—if I can’t earn a profit, I treat it as a lesson learned. That’s how I’m doing it for now.