Over the past couple of days, I’ve started trying to do some market making. Honestly, I’d been just watching other people talk about AMM curves before, but once I actually got in myself, I realized “impermanent loss” isn’t something you can treat lightly.

People say market making is basically effortless profit, but when you look at U-denominated curves, the losses caused by price going up and down can directly wipe out your fee revenue. Put simply, it’s not as straightforward as “just being wrong about direction.” It’s a bit better if you’re pairing with stablecoins—but if you’re trading a small-coin pair, a high-volatility AMM pool can really leave people totally confused.

Lately, everyone in the group has been talking about stablecoin depegging—there are claims about reserve audits, and all kinds of rumors. It’s been pretty lively. Some people say big institutions don’t dare touch it, but looking at on-chain fund flow data, I’m not that panicked. Anyway, I set my market-making target a bit lower. I used to always want to go all-in in one go, but now I only pick low-volatility assets and slow down my DCA pace. Honestly, after I lowered my target, I’ve ended up sticking with it longer—this state feels more comfortable than chasing pumps.

At the end of the day, market making isn’t really about “picking the wool.” Just think more about the impermanent loss curve and sentiment indicators—being steadier is better.