After two weeks of doing Uniswap V3 range, I finally figured out impermanent loss — basically, when the price moves out of range, all you’re left with are cheap tokens, while the expensive ones have been bought away. The fees look nice, but when you do the math, it still underperforms just holding one side, which is a bit frustrating.

Now the rate cut expectations are swinging back and forth, with the dollar and risk assets like a seesaw, and volatility just can’t be suppressed. In such market conditions, making a narrow range is like giving away money, while a wide range doesn’t earn much in fees. It’s quite a dilemma.

I’ve pulled back half of my position first, and the rest are placed far away as observation positions. Anyway, market making is really not easy money; you have to keep an eye on funding rates, large on-chain anomalies, etc. Stop when you’re tired, don’t force it.