On the DeFi scene, there's a fundamental split: makers are the ones staking capital as liquidity providers (LPs), while takers are the traders executing swaps. Sounds simple? Here's the catch—most people jump into yield farming without understanding the real game. The actual edge comes from mastering liquidity provision: how to accumulate swap fees, position yourself for profit, and crucially, how to neutralize impermanent loss before it silently bleeds your gains. Volatility is relentless, and if you're not actively managing your LP positions, returns erode faster than you'd think. That's where the discipline matters.
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potentially_notable
· 9h ago
NGL, most people doing liquidity mining are just giving away money and never think about impermanent loss.
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TradFiRefugee
· 9h ago
Hmm... That's right, most people don't really understand what IL is, and they're rushing in to farm it.
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LiquidationSurvivor
· 9h ago
I've been doing LP for two years and only now understand this crap... impermanent loss can directly send you home.
On the DeFi scene, there's a fundamental split: makers are the ones staking capital as liquidity providers (LPs), while takers are the traders executing swaps. Sounds simple? Here's the catch—most people jump into yield farming without understanding the real game. The actual edge comes from mastering liquidity provision: how to accumulate swap fees, position yourself for profit, and crucially, how to neutralize impermanent loss before it silently bleeds your gains. Volatility is relentless, and if you're not actively managing your LP positions, returns erode faster than you'd think. That's where the discipline matters.