Doing market making work— the more I think about it, the more it doesn’t feel like “easy profit.” It feels more like taking deliveries on the fly to earn a little hard-earned service fee. Recently, I’ve been looking at those social mining projects— if your attention can truly be mined into returns, then who covers the impermanent loss in the pool? Anyway, my current habit is: first draw a curve, calculate how far the price would need to move before I’d lose half of my fees, and only then think about how I’d enter.

In plain terms, that AMM curve looks like guaranteed gains, but you think it’s a sure thing— the price just jumps, and arbitrageurs react faster than you do. Some pools look like they offer high annualized returns, but once the volatility is even slightly larger, the losses end up being more than what you mined. So now I’m more willing to split pools by risk: put one layer for stablecoins, put a separate layer for altcoins, and use partitions in between. Otherwise, if you don’t do the risk layering properly, once attention comes in, the liquidity just runs along with the mood— and that curve turns into a roller coaster.