Recently, I keep seeing a bunch of people describing AMM market making as if it’s “just deposit and lie back to collect fees”… Put bluntly, the curve is right there: what you provide is liquidity, and you’re also giving the market a free channel for rebalancing. Once the price runs off course, you end up passively switching positions. Impermanent loss isn’t some kind of mysticism—it’s path dependence. Especially with concentrated liquidity: once the price goes outside the range, you directly turn into a one-sided position. If your mindset isn’t stable, you really can’t hold up.

Over the past couple of days, RWA, US Treasury yields, and on-chain yield products have been dragged into the same comparisons again. I’m actually more concerned about: where the yield comes from, how the tail risk will blow up, and whether rising correlation will end up “infecting” each other. The same goes for market making—don’t stare at annualized screenshot numbers. First, clearly lay out the drawdowns you can tolerate.

There’s too much information noise. My noise-reduction strategy is simple: only focus on the cash flows/risk sources you can explain clearly; ignore the rest of the excitement for now.