Recently, I saw someone treat AMM liquidity provision as a savings account. Frankly, that curve mechanism is just spreading out the price fluctuations within the pool. You earn transaction fees, but you might suffer impermanent loss. When volatility is high, it can "reverse time your timing." Yesterday, I casually checked on-chain, and in a pool with address 0x7c…, someone was continuously adding and removing liquidity during high volatility periods. As a result, their LP shares didn't decrease, but when converted back to the base currency, they actually shrank, which looked pretty frustrating.



Market making isn't a passive income, especially in a trending market. The pool will keep swapping your tokens away, leaving you holding a weaker side. When you want to withdraw, you'll realize "it's starting to look more like chasing rallies and selling dips." In on-chain games with inflation and studio-driven output, as token prices spiral downward, providing LP liquidity only makes things worse: transaction fees seem to be there, but the underlying assets keep losing value. Anyway, I now prefer to do less trading, focus on demand-driven settlement layer data, and when the market gets noisy, I just check Aurora… That's all for now.
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