Yesterday I saw someone posting a screenshot of LP yields again, captioned "passive income is a real treat"... It made me cringe so hard.

AMM market making basically means you're betting on both sides at the same time, and when the price shifts, it automatically "buys low and sells high" for you — sounds great, right? But with that curve curvature, the bigger the volatility, the more insidious your losses become. By the time you realize it, impermanent loss has already turned permanent. The worst case I've seen was some shitcoin pool: the token price doubled, but the yield still couldn't beat simply holding the asset, and after subtracting gas fees, you'd actually be in the red.

Now in this Meme season, attention shifts faster than ever — as soon as one celebrity shills, people move to the next. Pool depth disappears in an instant. Old-timers warn not to catch the last wave, but in reality, LP players are the ones silently taking the fall. You think you're being the landlord collecting rent, but actually you're providing liquidity for those who jump in and out quickly, and the fees can't fill the gap left by impermanent loss.

Anyway, now I only dare to stay flat in stablecoin pairs, or better yet, not stay at all — I manually withdraw faster than anyone. That's it for now.