My market maker friend complained to me yesterday, saying the pool depth looked quite thick, but a large order came in and buried him directly.

I asked if he had calculated the impermanent loss. He said he did, but it still hurts when it actually happens.

The AMM curve design, to put it bluntly, uses math to tie you to the gambling table.
The more the price fluctuates, the more skewed the ratio of your two assets becomes. When you want to withdraw, you find it's worse than just hodling.
Passive income? It doesn't exist. At best, it's trading risk for transaction fees.

Recently, the NFT side has also been arguing about royalties. Creators complain that liquidity is drained, while buyers think secondary trading should be free.
Actually, it's quite similar to LPs — if you want the market to be active, someone has to give up some benefits. The question is how much and to whom, no one can say for sure.

Anyway, I'm throwing in small amounts now, just paying tuition to observe how the curve moves.
Large positions? Let's leave it for now. I'll decide after I understand it.