I used to think that just throwing some coins into the pool and waiting for the fees to slowly come back was fine, after all, AMM automatically quotes prices, so it seemed pretty worry-free. Later, I realized that this curve thing is actually very "honest": once the price runs, your position is forced to become more and more skewed, and if you haven't accumulated enough fees, impermanent loss will give you a lesson first... Especially when liquidity is thin, slippage plus being squeezed makes the experience even worse. Recently, looking at the kind of collapse points in blockchain games where inflation is too high, studios rush in, and coin prices spiral downward, I suddenly understood: market making isn't just lying around eating meat; when the market is out of balance, you're just taking on the volatility for others. I'm now more cautious, preferring to put in less, try slowly across several chains, and if bridge fees are high, just consider it buying peace of mind.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned