Recently, I saw someone compare AMM to "deposit and just sit back to collect fees," but honestly, it's not that attractive. The curve of the AMM determines how you are passively rebalanced during price fluctuations: when the price deviates, the asset ratio in your holdings is forced to adjust accordingly. The more volatile the market, the easier it is to incur impermanent loss that eats up the fees, especially with highly volatile trading pairs. On the surface, the APY looks good, but when you do the math, it’s not really better than just holding steady.

These days, some regions are tightening taxes and compliance regulations again, and as deposit and withdrawal expectations change, market sentiment becomes more prone to swings. Volatility amplifies, and market making becomes even more uncomfortable. I now mostly provide liquidity with small positions and in batches, thinking ahead about whether I can accept "earning fees" or "potential losses from the curve"... Anyway, don’t fool yourself into thinking it’s a passive income. When prices really move, it’s quite mentally taxing. That’s all for now.