Just took a look at my own small liquidity pool market-making position, and I felt a bit discouraged: The AMM curve is basically "sell when up, buy when down," and when the market moves, it looks like fees are coming in, but impermanent loss is silently eating away at you. I used to think that just putting in liquidity would let me relax, but when volatility is high, comparing it to just holding coins, it might not necessarily be better.

Recently, there are also people complaining that miners/validators are making too much profit from MEV and transaction ordering... I’m even less confident now in considering market-making as a stable income. Anyway, my approach remains the same: only put into pools I understand, do small tests, prepare stop-loss plans in advance, and when emotions hit the threshold, withdraw—don’t stubbornly hold on.