Recently, I keep seeing people say, “The rate-cut expectations are here—risk assets are partying together,” and they just throw their positions into the pool, waiting to earn easy passive profits… To put it simply, the AMM curve doesn’t care about macro sentiment. It only recognizes price moving along the curve: when a big order comes through or a trend starts to form, what you’re doing in the pool is basically “sell low, buy high.” The result is that impermanent loss naturally eats you up, and trading fees might not even make it back. And don’t even talk about what happens when volatility is high and liquidity is thin—once squeezes and front-running kick in, you think you’re collecting rent, but in reality you’re giving other people better prices to exit with.

Anyway, before I provide liquidity now, I ask myself first: am I truly willing to hold this asset long-term? If not, don’t pretend. Next time, I might only provide liquidity to deep pools / low-volatility pairs, or I’ll simply set a “remove-from-the-pool” condition. How do you usually set your stop-loss line?